FedEx Corp., balance sheet: debt

US$ in millions

	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
Current portion of long-term debt	126)	82)	146)	51)	964)	1,342)
Long-term debt, less current portion	20,453)	20,182)	20,733)	21,952)	16,617)	15,243)
Total long-term debt, including current maturities (carrying amount)	20,579)	20,264)	20,879)	22,003)	17,581)	16,585)

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Debt item	Description	The company
Total long-term debt, including current maturities (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	FedEx Corp. total debt decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

	May 31, 2023
Selected Financial Data (US$ in millions)
Long-term debt, including current maturities and exclusive of finance leases	17,500)
Finance lease obligations	800)
Total long-term debt, including current maturities (fair value)	18,300)
Financial Ratio
Debt, fair value to carrying amount ratio	0.89

Weighted average interest rate on long-term debt: 3.50%

Interest rate	Debt amount¹	Interest rate × Debt amount
3.50%	20,579)	720)
Total	20,579)	720)
3.50%

¹ US$ in millions

² Weighted-average interest rate = 100 × 720 ÷ 20,579 = 3.50%

FedEx Corp., interest costs incurred

US$ in millions

12 months ended:	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
Interest expense	694)	689)	793)	672)	588)	558)
Capitalized interest	77)	62)	68)	54)	64)	61)
Interest costs incurred	771)	751)	861)	726)	652)	619)

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Debt item	Description	The company
Interest expense	Amount of the cost of borrowed funds accounted for as interest expense for debt.	FedEx Corp. interest expense decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Capitalized interest	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	FedEx Corp. capitalized interest decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Interest costs incurred	Total interest costs incurred during the period and either capitalized or charged against earnings.	FedEx Corp. interest costs incurred decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
Selected Financial Data (US$ in millions)
Net income	3,972)	3,826)	5,231)	1,286)	540)	4,572)
Add: Income tax expense	1,391)	1,070)	1,443)	383)	115)	(219)
Add: Interest expense	694)	689)	793)	672)	588)	558)
Earnings before interest and tax (EBIT)	6,057)	5,585)	7,467)	2,341)	1,243)	4,911)

Interest costs incurred	771)	751)	861)	726)	652)	619)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	8.73	8.11	9.42	3.48	2.11	8.80
Adjusted interest coverage ratio (with capitalized interest)²	7.86	7.44	8.67	3.22	1.91	7.93

2023 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 6,057 ÷ 694 = 8.73

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 6,057 ÷ 771 = 7.86

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Solvency ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	FedEx Corp. adjusted interest coverage ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

FedEx Corp. (NYSE:FDX)

Analysis of Debt