2024 Q3 Form 10-K Financial Statement

#000095017024083577 Filed on July 15, 2024

View on sec.gov

Income Statement

Concept 2024 Q3 2024 Q2 2024
Revenue $21.58B $22.11B $87.69B
YoY Change -0.47% 0.82% -2.73%
Cost Of Revenue $6.350B $6.286B $25.63B
YoY Change 3.47% 3.05% -7.47%
Gross Profit $15.23B $15.82B $62.06B
YoY Change -2.03% -0.04% -0.63%
Gross Profit Margin 70.57% 71.57% 70.77%
Selling, General & Admin $9.775B $9.596B $39.24B
YoY Change 0.15% 0.88% -0.77%
% of Gross Profit 64.19% 60.65% 63.23%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $1.078B $1.104B $4.287B
YoY Change 0.65% 2.7% 2.66%
% of Gross Profit 7.08% 6.98% 6.91%
Operating Expenses $14.02B $13.95B $55.82B
YoY Change 0.48% -0.8% -2.21%
Operating Profit $1.080B $1.873B $5.559B
YoY Change -27.27% 6.0% 3.46%
Interest Expense -$84.00M -$96.00M $745.0M
YoY Change -7.69% -8.57% -250.2%
% of Operating Profit -7.78% -5.13% 13.4%
Other Income/Expense, Net -$24.00M $569.0M $277.0M
YoY Change -61.29% -22.05% -70.75%
Pretax Income $1.056B $2.028B $5.836B
YoY Change -25.79% -4.7% 8.82%
Income Tax $262.0M $554.0M $1.505B
% Of Pretax Income 24.81% 27.32% 25.79%
Net Earnings $794.0M $1.472B $4.331B
YoY Change -26.35% -4.17% 9.2%
Net Earnings / Revenue 3.68% 6.66% 4.94%
Basic Earnings Per Share $3.24 $17.41
Diluted Earnings Per Share $3.21 $5.94 $17.21
COMMON SHARES
Basic Shares Outstanding 244.3M 248.0M
Diluted Shares Outstanding 247.0M 251.0M

Balance Sheet

Concept 2024 Q3 2024 Q2 2024
SHORT-TERM ASSETS
Cash & Short-Term Investments $5.943B $6.501B $6.501B
YoY Change -15.76% -5.18% -5.18%
Cash & Equivalents $5.943B $6.501B $6.501B
Short-Term Investments
Other Short-Term Assets $1.228B $1.005B $1.005B
YoY Change 23.54% 4.47% 4.47%
Inventory $611.0M $614.0M $614.0M
Prepaid Expenses
Receivables $10.31B $10.09B $10.09B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $18.09B $18.21B $18.21B
YoY Change -4.2% -2.17% -2.17%
LONG-TERM ASSETS
Property, Plant & Equipment $41.26B $41.49B $58.61B
YoY Change 0.2% -28.52% 0.97%
Goodwill $6.512B $6.423B
YoY Change 1.4% -0.19%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $3.756B $3.771B $3.590B
YoY Change -0.27% -6.96% -6.0%
Total Long-Term Assets $68.62B $68.80B $68.80B
YoY Change -0.1% 0.39% 0.39%
TOTAL ASSETS
Total Short-Term Assets $18.09B $18.21B $18.21B
Total Long-Term Assets $68.62B $68.80B $68.80B
Total Assets $86.71B $87.01B $87.01B
YoY Change -0.99% -0.16% -0.16%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.738B $3.189B $3.189B
YoY Change -1.48% -17.13% -17.13%
Accrued Expenses $4.905B $4.962B $10.10B
YoY Change -0.28% -48.38% 5.06%
Deferred Revenue $20.00M $23.00M
YoY Change -4.76% 21.05%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $622.0M $68.00M $68.00M
YoY Change 77.21% -46.03% -46.03%
Total Short-Term Liabilities $14.11B $13.36B $13.36B
YoY Change 2.17% -1.7% -1.7%
LONG-TERM LIABILITIES
Long-Term Debt $19.66B $20.14B $20.14B
YoY Change -2.39% -1.55% -1.55%
Other Long-Term Liabilities $693.0M $689.0M $21.45B
YoY Change -0.14% -96.94% -4.77%
Total Long-Term Liabilities $693.0M $689.0M $41.59B
YoY Change -0.14% -98.4% -3.24%
TOTAL LIABILITIES
Total Short-Term Liabilities $14.11B $13.36B $13.36B
Total Long-Term Liabilities $693.0M $689.0M $41.59B
Total Liabilities $14.80B $14.04B $59.43B
YoY Change 2.06% -77.0% -2.67%
SHAREHOLDERS EQUITY
Retained Earnings $38.77B $38.65B
YoY Change 7.62% 9.61%
Common Stock $4.166B $4.020B
YoY Change 8.72% 5.76%
Preferred Stock
YoY Change
Treasury Stock (at cost) $14.43B $13.73B
YoY Change 20.58% 17.89%
Treasury Stock Shares
Shareholders Equity $27.18B $27.58B $27.58B
YoY Change
Total Liabilities & Shareholders Equity $86.71B $87.01B $87.01B
YoY Change -0.99% -0.16% -0.16%

Cashflow Statement

Concept 2024 Q3 2024 Q2 2024
OPERATING ACTIVITIES
Net Income $794.0M $1.472B $4.331B
YoY Change -26.35% -4.17% 9.2%
Depreciation, Depletion And Amortization $1.078B $1.104B $4.287B
YoY Change 0.65% 2.7% 2.66%
Cash From Operating Activities $1.187B $2.698B $8.312B
YoY Change -46.77% -21.73% -6.06%
INVESTING ACTIVITIES
Capital Expenditures $767.0M $1.202B $5.176B
YoY Change -40.54% -31.47% -16.16%
Acquisitions
YoY Change
Other Investing Activities -$35.00M -$32.00M -$24.00M
YoY Change -450.0% -420.0%
Cash From Investing Activities -$802.0M -$1.234B -$5.200B
YoY Change -37.34% -29.24% -15.78%
FINANCING ACTIVITIES
Cash Dividend Paid $339.0M $1.259B
YoY Change 6.6% 6.97%
Common Stock Issuance & Retirement, Net $2.500B
YoY Change -297.01%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -969.0M -592.0M -3.426B
YoY Change 33.29% 194.53% 31.92%
NET CHANGE
Cash From Operating Activities 1.187B 2.698B 8.312B
Cash From Investing Activities -802.0M -1.234B -5.200B
Cash From Financing Activities -969.0M -592.0M -3.426B
Net Change In Cash -558.0M 872.0M -355.0M
YoY Change -380.4% -41.94% -561.04%
FREE CASH FLOW
Cash From Operating Activities $1.187B $2.698B $8.312B
Capital Expenditures $767.0M $1.202B $5.176B
Free Cash Flow $420.0M $1.496B $3.136B
YoY Change -55.32% -11.64% 17.28%

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CY2023 us-gaap Common Stock Dividends Per Share Declared
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StockholdersEquity
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NetIncomeLoss
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OtherComprehensiveIncomeLossTax
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CY2024 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
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CY2024 us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
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CY2024 us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
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CY2024 us-gaap Common Stock Dividends Per Share Declared
CommonStockDividendsPerShareDeclared
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CY2024 us-gaap Dividends Common Stock Cash
DividendsCommonStockCash
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CY2024 us-gaap Stock Issued During Period Shares Share Based Compensation
StockIssuedDuringPeriodSharesShareBasedCompensation
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CY2024 fdx Employee Incentive Plans And Other Net Of Forfeitures
EmployeeIncentivePlansAndOtherNetOfForfeitures
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CY2024Q2 us-gaap Stockholders Equity
StockholdersEquity
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CY2024 us-gaap Fiscal Period
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<span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;font-style:italic;min-width:fit-content;">FISCAL YEARS</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">. Except as otherwise specified, references to years indicate our fiscal year ended May 31, 2024</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> or ended May 31 of the year referenced.</span>
CY2024Q2 us-gaap Contract With Customer Asset Gross
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CY2023Q2 us-gaap Contract With Customer Asset Net
ContractWithCustomerAssetNet
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CY2024Q2 us-gaap Contract With Customer Liability Current
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CY2023Q2 us-gaap Contract With Customer Liability Current
ContractWithCustomerLiabilityCurrent
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CY2024 us-gaap Revenue Performance Obligation Description Of Payment Terms
RevenuePerformanceObligationDescriptionOfPaymentTerms
Under the typical payment terms of our customer contracts, the customer pays at periodic intervals (e.g., every 15 days, 30 days, 45 days, etc.) for shipments included on invoices received. It is not customary business practice to extend payment terms past 90 days, and as such, we do not have a practice of including a significant financing component within our revenue contracts with customers.
CY2024 us-gaap Concentration Risk Credit Risk
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<span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;font-style:italic;min-width:fit-content;">CREDIT RISK.</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> We routinely grant credit to many of our customers for transportation and business services without collateral. The risk of credit loss in our trade receivables is substantially mitigated by our credit evaluation process, short collection terms, and sales to a large number of customers, as well as the low revenue per transaction for most of our services. Allowances for potential credit losses are determined based on historical experience and the impact of current economic conditions. Historically, credit losses have been within management’s expectations.</span>
CY2024 us-gaap Marketing And Advertising Expense
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CY2023 us-gaap Marketing And Advertising Expense
MarketingAndAdvertisingExpense
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CY2022 us-gaap Marketing And Advertising Expense
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CY2024 fdx Depreciable Life Range For Majority Of Aircraft Cost
DepreciableLifeRangeForMajorityOfAircraftCost
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CY2024 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
4300000000
CY2023 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
4200000000
CY2022 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
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CY2024 us-gaap Interest Costs Capitalized
InterestCostsCapitalized
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InterestCostsCapitalized
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CY2024 fdx Impairment Of Long Lived Assets To Be Disposed Of Net Of Tax
ImpairmentOfLongLivedAssetsToBeDisposedOfNetOfTax
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CY2024 fdx Impairment Of Long Lived Assets To Be Disposed Of Net Of Tax Per Diluted Share
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CY2023 us-gaap Impairment Of Long Lived Assets To Be Disposed Of
ImpairmentOfLongLivedAssetsToBeDisposedOf
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CY2023 fdx Impairment Of Long Lived Assets To Be Disposed Of Net Of Tax
ImpairmentOfLongLivedAssetsToBeDisposedOfNetOfTax
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CY2023 fdx Impairment Of Long Lived Assets To Be Disposed Of Net Of Tax Per Diluted Share
ImpairmentOfLongLivedAssetsToBeDisposedOfNetOfTaxPerDilutedShare
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CY2024Q2 fdx Number Of Idle Aircraft
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19
CY2024 fdx Aircrafts Idle Term
AircraftsIdleTerm
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CY2024 fdx Business Optimization Costs
BusinessOptimizationCosts
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CY2024 fdx Business Optimization Costs Net Of Tax
BusinessOptimizationCostsNetOfTax
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CY2024 fdx Business Optimization Costs Per Diluted Share
BusinessOptimizationCostsPerDilutedShare
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CY2023 fdx Business Optimization Costs
BusinessOptimizationCosts
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CY2023 fdx Business Optimization Costs Net Of Tax
BusinessOptimizationCostsNetOfTax
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CY2023 fdx Business Optimization Costs Per Diluted Share
BusinessOptimizationCostsPerDilutedShare
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us-gaap Restructuring And Related Cost Expected Number Of Positions Eliminated
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CY2023 fdx Business Realignment Costs
BusinessRealignmentCosts
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CY2023 fdx Business Realignment Costs Net Of Tax
BusinessRealignmentCostsNetOfTax
27000000
CY2023 fdx Business Realignment Costs Per Diluted Share
BusinessRealignmentCostsPerDilutedShare
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CY2022 fdx Business Realignment Costs
BusinessRealignmentCosts
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CY2022 fdx Business Realignment Costs Net Of Tax
BusinessRealignmentCostsNetOfTax
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CY2022 fdx Business Realignment Costs Per Diluted Share
BusinessRealignmentCostsPerDilutedShare
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CY2023 fdx Employee Severance Costs
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CY2022 fdx Employee Severance Costs
EmployeeSeveranceCosts
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fdx Business Realignment Costs
BusinessRealignmentCosts
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CY2024 fdx Business Realignment Costs
BusinessRealignmentCosts
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CY2024 us-gaap Use Of Estimates
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<p style="font-size:10pt;margin-top:9pt;font-family:Times New Roman;margin-bottom:0;text-align:left;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;font-style:italic;min-width:fit-content;">USE OF ESTIMATES</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">. The preparation of our consolidated financial statements requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenue and expenses, and the disclosure of contingent liabilities. Management makes its best estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available to management. Areas where the nature of the estimate makes it reasonably possible that actual results could materially differ from amounts estimated include self-insurance accruals, retirement plan obligations, long-term incentive accruals, tax liabilities, loss contingencies, litigation claims, impairment assessments on long-lived assets (including goodwill) that rely on projections of future cash flows, and purchase price allocations.</span></p>
CY2024 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
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CY2023 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
696000000
CY2022 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
403000000
CY2024Q2 us-gaap Allowance For Doubtful Accounts Receivable
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CY2023Q2 us-gaap Allowance For Doubtful Accounts Receivable
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CY2022Q2 us-gaap Goodwill Gross
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CY2022Q2 us-gaap Goodwill Impaired Accumulated Impairment Loss
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CY2022Q2 us-gaap Goodwill
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CY2023 us-gaap Goodwill Impairment Loss
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CY2023Q2 us-gaap Goodwill
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6435000000
CY2024 us-gaap Goodwill Other Increase Decrease
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CY2024Q2 us-gaap Goodwill
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CY2024Q2 us-gaap Goodwill Impaired Accumulated Impairment Loss
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633000000
CY2024Q2 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
452000000
CY2024Q2 us-gaap Finite Lived Intangible Assets Net
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181000000
CY2023Q2 us-gaap Finite Lived Intangible Assets Gross
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646000000
CY2023Q2 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
412000000
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234000000
CY2024Q2 us-gaap Asset Impairment Charges
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0
CY2024 us-gaap Amortization Of Intangible Assets
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CY2023 us-gaap Amortization Of Intangible Assets
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CY2022 us-gaap Amortization Of Intangible Assets
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CY2024Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Next Twelve Months
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45000000
CY2024Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo
45000000
CY2024Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
FiniteLivedIntangibleAssetsAmortizationExpenseYearThree
43000000
CY2024Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
FiniteLivedIntangibleAssetsAmortizationExpenseYearFour
41000000
CY2024Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Five
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CY2023Q2 us-gaap Accrued Salaries Current
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828000000
CY2024Q2 us-gaap Accrued Employee Benefits Current
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977000000
CY2023Q2 us-gaap Accrued Employee Benefits Current
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689000000
CY2024Q2 us-gaap Accrued Vacation Current
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939000000
CY2023Q2 us-gaap Accrued Vacation Current
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958000000
CY2024Q2 us-gaap Employee Related Liabilities Current
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2673000000
CY2023Q2 us-gaap Employee Related Liabilities Current
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2475000000
CY2024Q2 us-gaap Accrued Insurance Current
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1931000000
CY2023Q2 us-gaap Accrued Insurance Current
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1730000000
CY2024Q2 us-gaap Accrual For Taxes Other Than Income Taxes Current
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334000000
CY2023Q2 us-gaap Accrual For Taxes Other Than Income Taxes Current
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305000000
CY2024Q2 us-gaap Other Accrued Liabilities Current
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2697000000
CY2023Q2 us-gaap Other Accrued Liabilities Current
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2712000000
CY2024Q2 us-gaap Accrued Liabilities Current
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4962000000
CY2023Q2 us-gaap Accrued Liabilities Current
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4747000000
CY2024Q2 us-gaap Finance Lease Liability
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431000000
CY2023Q2 us-gaap Finance Lease Liability
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800000000
CY2024Q2 fdx Debt And Finance Lease Obligations
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20203000000
CY2023Q2 fdx Debt And Finance Lease Obligations
DebtAndFinanceLeaseObligations
20579000000
CY2024Q2 fdx Long Term Debt And Finance Lease Obligations Current
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68000000
CY2023Q2 fdx Long Term Debt And Finance Lease Obligations Current
LongTermDebtAndFinanceLeaseObligationsCurrent
126000000
CY2024Q2 fdx Long Term Debt And Finance Lease Obligations
LongTermDebtAndFinanceLeaseObligations
20135000000
CY2023Q2 fdx Long Term Debt And Finance Lease Obligations
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20453000000
CY2024Q2 us-gaap Longterm Debt Weighted Average Interest Rate
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0.035
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17500000000
CY2023Q2 fdx Long Term Debt Including Current Maturities Fair Value
LongTermDebtIncludingCurrentMaturitiesFairValue
17500000000
CY2024Q2 fdx Number Of Boeing Aircraft
NumberOfBoeingAircraft
19
CY2024Q2 fdx Net Book Value Of Collateralized Boeing Aircraft
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1700000000
CY2024Q2 us-gaap Long Term Debt Maturities Repayments Of Principal In Next Twelve Months
LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths
52000000
CY2024Q2 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Two
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo
1344000000
CY2024Q2 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Three
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree
1409000000
CY2024Q2 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Four
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour
552000000
CY2024Q2 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Five
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive
1103000000
CY2024Q2 us-gaap Long Term Debt Maturities Repayments Of Principal After Year Five
LongTermDebtMaturitiesRepaymentsOfPrincipalAfterYearFive
15517000000
CY2024Q2 us-gaap Debt Instrument Face Amount
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19977000000
CY2024Q2 us-gaap Debt Instrument Unamortized Discount Premium And Debt Issuance Costs Net
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205000000
CY2024Q2 us-gaap Long Term Debt
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19772000000
CY2024Q2 fdx Debt To Earnings Before Interest Tax Depreciation And Amortization Ratio Maximum
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0.035
CY2024Q2 fdx Debt To Earnings Before Interest Tax Depreciation And Amortization Ratio
DebtToEarningsBeforeInterestTaxDepreciationAndAmortizationRatio
0.018
CY2024Q1 fdx Line Of Credit Facility Financial Covenant Minimum Cash Consideration For Acquisition
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250000000
CY2024Q1 fdx Debt To Earnings Before Interest Tax Depreciation And Amortization Ratio Maximum
DebtToEarningsBeforeInterestTaxDepreciationAndAmortizationRatioMaximum
0.04
CY2024Q1 fdx Debt To Earnings Before Interest Tax Depreciation And Amortization Ratio
DebtToEarningsBeforeInterestTaxDepreciationAndAmortizationRatio
0.035
CY2024 us-gaap Operating Lease Cost
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3326000000
CY2023 us-gaap Operating Lease Cost
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3300000000
CY2024 us-gaap Finance Lease Right Of Use Asset Amortization
FinanceLeaseRightOfUseAssetAmortization
30000000
CY2023 us-gaap Finance Lease Right Of Use Asset Amortization
FinanceLeaseRightOfUseAssetAmortization
36000000
CY2024 us-gaap Finance Lease Interest Expense
FinanceLeaseInterestExpense
24000000
CY2023 us-gaap Finance Lease Interest Expense
FinanceLeaseInterestExpense
18000000
CY2024 fdx Finance Lease Cost
FinanceLeaseCost
54000000
CY2023 fdx Finance Lease Cost
FinanceLeaseCost
54000000
CY2024 us-gaap Short Term Lease Cost
ShortTermLeaseCost
494000000
CY2023 us-gaap Short Term Lease Cost
ShortTermLeaseCost
531000000
CY2024 us-gaap Variable Lease Cost
VariableLeaseCost
1714000000
CY2023 us-gaap Variable Lease Cost
VariableLeaseCost
1435000000
CY2024 us-gaap Lease Cost
LeaseCost
5588000000
CY2023 us-gaap Lease Cost
LeaseCost
5320000000
CY2024 us-gaap Operating Lease Payments
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3319000000
CY2023 us-gaap Operating Lease Payments
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3207000000
CY2024 us-gaap Finance Lease Interest Payment On Liability
FinanceLeaseInterestPaymentOnLiability
15000000
CY2023 us-gaap Finance Lease Interest Payment On Liability
FinanceLeaseInterestPaymentOnLiability
15000000
CY2024 us-gaap Finance Lease Principal Payments
FinanceLeasePrincipalPayments
80000000
CY2023 us-gaap Finance Lease Principal Payments
FinanceLeasePrincipalPayments
94000000
CY2024 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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2083000000
CY2023 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
3317000000
CY2024 us-gaap Right Of Use Asset Obtained In Exchange For Finance Lease Liability
RightOfUseAssetObtainedInExchangeForFinanceLeaseLiability
10000000
CY2023 us-gaap Right Of Use Asset Obtained In Exchange For Finance Lease Liability
RightOfUseAssetObtainedInExchangeForFinanceLeaseLiability
414000000
CY2024Q2 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
17115000000
CY2023Q2 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
17347000000
CY2024Q2 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
2463000000
CY2023Q2 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
2390000000
CY2024Q2 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
15053000000
CY2023Q2 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
15363000000
CY2024Q2 us-gaap Operating Lease Liability
OperatingLeaseLiability
17516000000
CY2023Q2 us-gaap Operating Lease Liability
OperatingLeaseLiability
17753000000
CY2024Q2 us-gaap Finance Lease Right Of Use Asset
FinanceLeaseRightOfUseAsset
373000000
CY2023Q2 us-gaap Finance Lease Right Of Use Asset
FinanceLeaseRightOfUseAsset
821000000
CY2024Q2 us-gaap Finance Lease Liability Current
FinanceLeaseLiabilityCurrent
18000000
CY2023Q2 us-gaap Finance Lease Liability Current
FinanceLeaseLiabilityCurrent
75000000
CY2024Q2 us-gaap Finance Lease Liability Noncurrent
FinanceLeaseLiabilityNoncurrent
413000000
CY2023Q2 us-gaap Finance Lease Liability Noncurrent
FinanceLeaseLiabilityNoncurrent
725000000
CY2024Q2 us-gaap Finance Lease Liability
FinanceLeaseLiability
431000000
CY2023Q2 us-gaap Finance Lease Liability
FinanceLeaseLiability
800000000
CY2024Q2 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P9Y6M
CY2023Q2 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P9Y6M
CY2024Q2 us-gaap Finance Lease Weighted Average Remaining Lease Term1
FinanceLeaseWeightedAverageRemainingLeaseTerm1
P29Y9M18D
CY2023Q2 us-gaap Finance Lease Weighted Average Remaining Lease Term1
FinanceLeaseWeightedAverageRemainingLeaseTerm1
P27Y6M
CY2024Q2 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.0379
CY2023Q2 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.0342
CY2024Q2 us-gaap Finance Lease Weighted Average Discount Rate Percent
FinanceLeaseWeightedAverageDiscountRatePercent
0.0363
CY2023Q2 us-gaap Finance Lease Weighted Average Discount Rate Percent
FinanceLeaseWeightedAverageDiscountRatePercent
0.0422
CY2024 fdx Finance And Operating Leases Expiration Term
FinanceAndOperatingLeasesExpirationTerm
various dates through 2078
CY2024Q2 fdx Percentage Of Aircraft Fleet Leased Under Operating Leases
PercentageOfAircraftFleetLeasedUnderOperatingLeases
0.01
CY2023Q2 fdx Percentage Of Aircraft Fleet Leased Under Operating Leases
PercentageOfAircraftFleetLeasedUnderOperatingLeases
0.01
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
3032000000
CY2024Q2 us-gaap Finance Lease Liability Payments Due Next Twelve Months
FinanceLeaseLiabilityPaymentsDueNextTwelveMonths
33000000
CY2024Q2 fdx Lessee Operating Lease And Finance Lease Liability Payments Due Due Next Twelve Months
LesseeOperatingLeaseAndFinanceLeaseLiabilityPaymentsDueDueNextTwelveMonths
3065000000
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
2882000000
CY2024Q2 us-gaap Finance Lease Liability Payments Due Year Two
FinanceLeaseLiabilityPaymentsDueYearTwo
30000000
CY2024Q2 fdx Lessee Operating Lease And Finance Lease Liability Payments Due Year Two
LesseeOperatingLeaseAndFinanceLeaseLiabilityPaymentsDueYearTwo
2912000000
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
2573000000
CY2024Q2 us-gaap Finance Lease Liability Payments Due Year Three
FinanceLeaseLiabilityPaymentsDueYearThree
22000000
CY2024Q2 fdx Lessee Operating Lease And Finance Liability Payments Due Year Three
LesseeOperatingLeaseAndFinanceLiabilityPaymentsDueYearThree
2595000000
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
2241000000
CY2024Q2 us-gaap Finance Lease Liability Payments Due Year Four
FinanceLeaseLiabilityPaymentsDueYearFour
21000000
CY2024Q2 fdx Lessee Operating Lease And Finance Lease Liability Payments Due Year Four
LesseeOperatingLeaseAndFinanceLeaseLiabilityPaymentsDueYearFour
2262000000
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Five
LesseeOperatingLeaseLiabilityPaymentsDueYearFive
1874000000
CY2024Q2 us-gaap Finance Lease Liability Payments Due Year Five
FinanceLeaseLiabilityPaymentsDueYearFive
19000000
CY2024Q2 fdx Lessee Operating Lease And Finance Lease Liability Payments Due Year Five
LesseeOperatingLeaseAndFinanceLeaseLiabilityPaymentsDueYearFive
1893000000
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive
8547000000
CY2024Q2 us-gaap Finance Lease Liability Payments Due After Year Five
FinanceLeaseLiabilityPaymentsDueAfterYearFive
630000000
CY2024Q2 fdx Lessee Operating Lease And Finance Lease Liability Payments Due After Year Five
LesseeOperatingLeaseAndFinanceLeaseLiabilityPaymentsDueAfterYearFive
9177000000
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
21149000000
CY2024Q2 us-gaap Finance Lease Liability Payments Due
FinanceLeaseLiabilityPaymentsDue
755000000
CY2024Q2 fdx Lessee Operating Lease And Finance Lease Liability Payments Due
LesseeOperatingLeaseAndFinanceLeaseLiabilityPaymentsDue
21904000000
CY2024Q2 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
3633000000
CY2024Q2 us-gaap Finance Lease Liability Undiscounted Excess Amount
FinanceLeaseLiabilityUndiscountedExcessAmount
324000000
CY2024Q2 fdx Lessee Operating Lease And Finance Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseAndFinanceLeaseLiabilityUndiscountedExcessAmount
3957000000
CY2024Q2 us-gaap Operating Lease Liability
OperatingLeaseLiability
17516000000
CY2024Q2 us-gaap Finance Lease Liability
FinanceLeaseLiability
431000000
CY2024Q2 fdx Operating Lease And Finance Lease Liability
OperatingLeaseAndFinanceLeaseLiability
17947000000
CY2024Q2 fdx Lessee Operating And Finance Lease Lease Not Yet Commenced Undiscounted Future Payments
LesseeOperatingAndFinanceLeaseLeaseNotYetCommencedUndiscountedFuturePayments
900000000
CY2024Q2 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
4000000
CY2024Q2 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0
CY2024 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
163000000
CY2023 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
182000000
CY2022 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
190000000
CY2024 fdx Stock Options Vesting Period Range
StockOptionsVestingPeriodRange
one to four years
CY2024 fdx Restricted Stocks Expiration Period
RestrictedStocksExpirationPeriod
ratably over four years
CY2024 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Method Used
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsMethodUsed
Black-Scholes
CY2024 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
79.48
CY2023 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
63.44
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
80.21
CY2024 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
290000000
CY2023 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
160000000
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
150000000
CY2024 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P6Y4M24D
CY2023 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P6Y4M24D
CY2022 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P6Y4M24D
CY2024 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.35
CY2023 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.34
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.32
CY2024 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.0394
CY2023 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.0168
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.0065
CY2024 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.02030
CY2023 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.01694
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.00983
CY2024 fdx Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Maximum Term
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedMaximumTerm
P10Y
CY2023Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
15191189
CY2023Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
199.89
CY2024 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod
1837624
CY2024 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
234.69
CY2024 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
2927083
CY2024 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
167.76
CY2024 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod
643740
CY2024 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice
225.82
CY2024Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
13457990
CY2024Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
210.35
CY2024 us-gaap Sharebased Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Outstanding Options Weighted Average Remaining Contractual Term2
SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2
P5Y10M24D
CY2024Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
665000000
CY2024Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber
9110750
CY2024Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
204.61
CY2024 us-gaap Sharebased Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Exercisable Options Weighted Average Remaining Contractual Term2
SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2
P4Y9M18D
CY2024Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1
508000000
CY2024Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber
3930202
CY2024Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageExercisePrice
222.43
CY2024 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1
P8Y1M6D
CY2024Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Aggregate Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingAggregateIntrinsicValue
143000000
CY2024Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant
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In 2020, we announced the closing of our U.S.-based defined benefit pension plans to new non-union employees hired on or after January 1, 2020. We introduced an all-401(k) plan retirement benefit structure for eligible employees with a higher company match of up to 8% across all U.S.-based operating companies in 2022. During calendar 2021, current eligible employees under the PPA pension formula were given a one-time option to continue to be eligible for pension compensation credits under the existing PPA formula and remain in the existing 401(k) plan with its company match of up to 3.5%, or to cease receiving compensation credits under the PPA and move to the new 401(k) plan with the higher match of up to 8%. Changes to the new 401(k) plan structure became effective January 1, 2022. See Note 1 for additional information on expected amendments to our pension plan offered to FedEx Express pilots.
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<p style="font-size:10pt;margin-top:12pt;font-family:Times New Roman;margin-bottom:0;text-align:left;"><span style="color:#000000;white-space:pre-wrap;font-weight:bold;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">NOTE 20: CONTINGENCIES</span></p><p style="font-size:10pt;margin-top:0;font-family:Times New Roman;margin-bottom:0;text-align:left;"><span style="white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> </span></p><p style="font-size:10pt;margin-top:0;font-family:Times New Roman;margin-bottom:0;text-align:left;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;font-style:italic;min-width:fit-content;">Service Provider Lawsuits</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">. FedEx Ground is defending against lawsuits in which it is alleged that FedEx Ground should be treated as an employer or joint employer of drivers employed by service providers engaged by FedEx Ground. These cases are in varying stages of litigation, and we are not currently able to estimate an amount or range of potential loss in all of these matters. However, we do not expect to incur, individually or in the aggregate, a material loss in these matters. Nevertheless, adverse determinations in these matters could, among other things, entitle service providers’ drivers to certain payments, including wages and penalties, from the service providers and FedEx Ground and result in employment and withholding tax and benefit liability for FedEx Ground. We continue to believe that FedEx Ground is not an employer or joint employer of the drivers of these independent businesses.</span></p><p style="font-size:10pt;margin-top:0;font-family:Times New Roman;margin-bottom:0;text-align:left;"><span style="white-space:pre-wrap;font-size:10pt;font-family:'Tahoma',sans-serif;min-width:fit-content;"> </span></p><p style="font-size:10pt;margin-top:0;font-family:Times New Roman;margin-bottom:0;text-align:left;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;font-style:italic;min-width:fit-content;">FedEx Services Employment Lawsuit</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">. In May 2021, FedEx Services was named as a defendant in a lawsuit filed in the U.S. District Court for the Southern District of Texas related to the termination of a former FedEx Services employee. The complaint alleged race discrimination and retaliation for complaints of discrimination under Section 1981 of the Civil Rights Act of 1866 and Title VII of the Civil Rights Act of 1964. After trial, in October 2022, the jury found in favor of FedEx Services on the race discrimination claims but awarded the plaintiff compensatory damages of approximately $</span><span style="font-size:10pt;font-family:Times New Roman;color:#000000;white-space:pre-wrap;min-width:fit-content;">1.0</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> million for emotional distress and punitive damages of $</span><span style="font-size:10pt;font-family:Times New Roman;color:#000000;white-space:pre-wrap;min-width:fit-content;">365</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> million for the retaliation claims. The court entered final judgment in the amount of approximately $</span><span style="font-size:10pt;font-family:Times New Roman;color:#000000;white-space:pre-wrap;min-width:fit-content;">366</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> million. FedEx Services appealed the verdict to the U.S. Court of Appeals for the Fifth Circuit. FedEx Services argued on appeal that FedEx Services is entitled to judgment as a matter of law on the retaliation claims, plaintiff’s claims were not timely filed, punitive damages are not available as a matter of law and, if allowed, must be reduced to no greater than a single-digit multiple of the award for compensatory damages based on the United States Supreme Court’s ruling in </span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;font-style:italic;min-width:fit-content;">State Farm v. Campbell</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">, and the compensatory damages award must be reduced to conform with the evidence and the Fifth Circuit’s maximum recovery rule. FedEx Services argued in the alternative that a new trial should be granted.</span></p><p style="font-size:10pt;margin-top:0;font-family:Times New Roman;margin-bottom:0;text-align:left;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:'Tahoma',sans-serif;min-width:fit-content;"></span></p><p style="font-size:10pt;margin-top:0;font-family:Times New Roman;margin-bottom:8pt;text-align:left;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">In February 2024, a three-judge panel of the U.S. Court of Appeals for the Fifth Circuit reduced the jury’s emotional distress award of approximately $</span><span style="font-size:10pt;font-family:Times New Roman;color:#000000;white-space:pre-wrap;min-width:fit-content;">1.0</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> million to approximately $</span><span style="font-size:10pt;font-family:Times New Roman;color:#000000;white-space:pre-wrap;min-width:fit-content;">250,000</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> and vacated the jury’s $</span><span style="font-size:10pt;font-family:Times New Roman;color:#000000;white-space:pre-wrap;min-width:fit-content;">365</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> million award for punitive damages based on its finding that FedEx Services made good faith efforts to comply with the law. In March 2024, the full Fifth Circuit unanimously denied plaintiff’s petition for rehearing. In June 2024, plaintiff petitioned the U.S. Supreme Court for review of the Fifth Circuit’s reduction of the emotional distress award and determination that FedEx Services’s employment agreement provides a reasonable time for filing Section 1981 claims. The petition does not challenge the Fifth’s Circuit’s decision to vacate the punitive damages award. An immaterial loss accrual has been recorded in FedEx’s consolidated financial statements.</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> </span></p><p style="font-size:10pt;margin-top:0;font-family:Times New Roman;margin-bottom:0;text-align:left;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;font-style:italic;min-width:fit-content;">FedEx Ground Negligence Lawsuit.</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> In December 2022, FedEx Ground was named as a defendant in a lawsuit filed in Texas state court related to the alleged kidnapping and first-degree murder of a minor by a driver employed by a service provider engaged by FedEx Ground. The complaint alleges compensatory and punitive damages against FedEx Ground for negligent and gross negligent hiring and retention, as well as negligent entrustment. The service provider and driver are also named as defendants in the lawsuit. An immaterial loss accrual has been recorded in FedEx’s consolidated financial statements. It is reasonably possible that an additional material loss could be incurred. At this stage of the litigation, we cannot estimate the amount or range of such additional loss, if any.</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;font-style:italic;min-width:fit-content;"><br/></span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;font-style:italic;min-width:fit-content;"> </span></p><p style="font-size:10pt;margin-top:0;font-family:Times New Roman;margin-bottom:0;text-align:left;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;font-style:italic;min-width:fit-content;">Other Matters</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">. FedEx and its subsidiaries are subject to other legal proceedings that arise in the ordinary course of business, including certain lawsuits containing various class-action allegations of wage-and-hour violations in which plaintiffs claim, among other things, that they were forced to work “off the clock,” were not paid overtime, or were not provided work breaks or other benefits, as well as other lawsuits containing allegations that FedEx and its subsidiaries are responsible for third-party losses related to vehicle accidents that could exceed our insurance coverage for such losses. In the opinion of management, the aggregate liability, if any, with respect to these other actions will not have a material adverse effect on our financial position, results of operations, or cash flows.</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;font-style:italic;min-width:fit-content;"><br/></span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;font-style:italic;min-width:fit-content;"> </span></p><p style="font-size:10pt;margin-top:0;font-family:Times New Roman;margin-bottom:0;text-align:left;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;font-style:italic;min-width:fit-content;">Environmental Matters</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">. SEC regulations require us to disclose certain information about proceedings arising under federal, state, or local environmental provisions if we reasonably believe that such proceedings may result in monetary sanctions above a stated threshold. Pursuant to the SEC regulations, FedEx uses a threshold of $</span><span style="font-size:10pt;font-family:Times New Roman;color:#000000;white-space:pre-wrap;min-width:fit-content;">1</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> million or more for purposes of determining whether disclosure of any such proceedings is required. Applying this threshold, there are no environmental matters required to be disclosed for this period.</span></p><p style="font-size:10pt;margin-top:0;font-family:Times New Roman;margin-bottom:0;text-align:left;"><span style="color:#000000;white-space:pre-wrap;font-size:11pt;font-family:Arial;min-width:fit-content;"> </span></p>
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