Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

FedEx Corp., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
Federal	579)	311)	199)	(230)	(107)	(540)
State and local	157)	120)	158)	67)	64)	43)
Domestic	736)	431)	357)	(163)	(43)	(497)
Foreign	209)	317)	284)	198)	243)	461)
Current provision (benefit)	945)	748)	641)	35)	200)	(36)
Federal	369)	267)	667)	475)	(61)	271)
State and local	37)	21)	70)	1)	(7)	125)
Domestic	406)	288)	737)	476)	(68)	396)
Foreign	40)	34)	65)	(128)	(17)	(579)
Deferred provision (benefit)	446)	322)	802)	348)	(85)	(183)
Provision (benefit) for income taxes	1,391)	1,070)	1,443)	383)	115)	(219)

Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).

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Item	Description	The company
Current provision (benefit)	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	FedEx Corp. current provision (benefit) increased from 2021 to 2022 and from 2022 to 2023.
Deferred provision (benefit)	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	FedEx Corp. deferred provision (benefit) decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Provision (benefit) for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	FedEx Corp. provision (benefit) for income taxes decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

FedEx Corp., effective income tax rate (EITR) reconciliation

	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
Statutory federal income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	29.20%
Effective tax rate, before TCJA	25.90%	21.90%	21.60%	23.00%	28.40%	26.10%
Effective tax rate	25.90%	21.90%	21.60%	23.00%	17.60%	-5.00%

Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).

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Item	Description	The company
Effective tax rate, before TCJA	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	FedEx Corp. effective tax rate, before TCJA increased from 2021 to 2022 and from 2022 to 2023.

FedEx Corp., components of deferred tax assets and liabilities

US$ in millions

	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
Property, equipment, leases, and intangibles	4,608)	4,464)	4,248)	3,819)	592)	752)
Employee benefits	876)	1,203)	1,178)	1,448)	1,256)	595)
Self-insurance accruals	1,085)	931)	799)	647)	585)	494)
Other	454)	524)	497)	579)	510)	416)
Net operating loss/credit carryforwards	1,149)	1,079)	934)	1,262)	1,139)	1,146)
Deferred tax assets, gross	8,172)	8,201)	7,656)	7,755)	4,082)	3,403)
Valuation allowances	(471)	(413)	(382)	(450)	(590)	(711)
Deferred tax assets	7,701)	7,788)	7,274)	7,305)	3,492)	2,692)
Property, equipment, leases, and intangibles	(10,965)	(10,608)	(9,731)	(8,745)	(4,633)	(3,663)
Employee benefits	—)	—)	—)	—)	—)	(31)
Other	(62)	(66)	(52)	(375)	(340)	(602)
Deferred tax liabilities	(11,027)	(10,674)	(9,783)	(9,120)	(4,973)	(4,296)
Net deferred tax assets (liabilities)	(3,326)	(2,886)	(2,509)	(1,815)	(1,481)	(1,604)

Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).

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Item	Description	The company
Deferred tax assets, gross	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	FedEx Corp. deferred tax assets, gross increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	FedEx Corp. deferred tax assets increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	FedEx Corp. net deferred tax assets (liabilities) decreased from 2021 to 2022 and from 2022 to 2023.

FedEx Corp., deferred tax assets and liabilities, classification

US$ in millions

		May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
	Noncurrent deferred tax assets (included in Other assets)	1,163)	1,207)	1,418)	1,347)	1,340)	1,263)
	Noncurrent deferred tax liabilities	4,489)	4,093)	3,927)	3,162)	2,821)	2,867)

Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).

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Item	Description	The company
Noncurrent deferred tax assets (included in Other assets)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	FedEx Corp. noncurrent deferred tax assets (included in Other assets) decreased from 2021 to 2022 and from 2022 to 2023.
Noncurrent deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	FedEx Corp. noncurrent deferred tax liabilities increased from 2021 to 2022 and from 2022 to 2023.

FedEx Corp., adjustments to financial statements

US$ in millions

	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
Adjustment to Total Assets
Total assets (as reported)	87,143)	85,994)	82,777)	73,537)	54,403)	52,330)
Less: Noncurrent deferred tax assets, net	1,163)	1,207)	1,418)	1,347)	1,340)	1,263)
Total assets (adjusted)	85,980)	84,787)	81,359)	72,190)	53,063)	51,067)
Adjustment to Total Liabilities
Total liabilities (as reported)	61,055)	61,055)	58,609)	55,242)	36,646)	32,914)
Less: Noncurrent deferred tax liabilities, net	4,489)	4,093)	3,927)	3,162)	2,821)	2,867)
Total liabilities (adjusted)	56,566)	56,962)	54,682)	52,080)	33,825)	30,047)
Adjustment to Common Stockholders’ Investment
Common stockholders’ investment (as reported)	26,088)	24,939)	24,168)	18,295)	17,757)	19,416)
Less: Net deferred tax assets (liabilities)	(3,326)	(2,886)	(2,509)	(1,815)	(1,481)	(1,604)
Common stockholders’ investment (adjusted)	29,414)	27,825)	26,677)	20,110)	19,238)	21,020)
Adjustment to Net Income
Net income (as reported)	3,972)	3,826)	5,231)	1,286)	540)	4,572)
Add: Deferred income tax expense (benefit)	446)	322)	802)	348)	(85)	(183)
Net income (adjusted)	4,418)	4,148)	6,033)	1,634)	455)	4,389)

Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).

FedEx Corp., Financial Data: Reported vs. Adjusted

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FedEx Corp., adjusted financial ratios

	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
Net Profit Margin
Reported net profit margin	4.41%	4.09%	6.23%	1.86%	0.77%	6.99%
Adjusted net profit margin	4.90%	4.44%	7.19%	2.36%	0.65%	6.71%
Total Asset Turnover
Reported total asset turnover	1.03	1.09	1.01	0.94	1.28	1.25
Adjusted total asset turnover	1.05	1.10	1.03	0.96	1.31	1.28
Financial Leverage
Reported financial leverage	3.34	3.45	3.43	4.02	3.06	2.70
Adjusted financial leverage	2.92	3.05	3.05	3.59	2.76	2.43
Return on Equity (ROE)
Reported ROE	15.23%	15.34%	21.64%	7.03%	3.04%	23.55%
Adjusted ROE	15.02%	14.91%	22.61%	8.13%	2.37%	20.88%
Return on Assets (ROA)
Reported ROA	4.56%	4.45%	6.32%	1.75%	0.99%	8.74%
Adjusted ROA	5.14%	4.89%	7.42%	2.26%	0.86%	8.59%

Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	FedEx Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	FedEx Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	FedEx Corp. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	FedEx Corp. adjusted ROE deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	FedEx Corp. adjusted ROA deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

FedEx Corp., Financial Ratios: Reported vs. Adjusted

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	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income	3,972)	3,826)	5,231)	1,286)	540)	4,572)
Revenue	90,155)	93,512)	83,959)	69,217)	69,693)	65,450)
Profitability Ratio
Net profit margin¹	4.41%	4.09%	6.23%	1.86%	0.77%	6.99%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	4,418)	4,148)	6,033)	1,634)	455)	4,389)
Revenue	90,155)	93,512)	83,959)	69,217)	69,693)	65,450)
Profitability Ratio
Adjusted net profit margin²	4.90%	4.44%	7.19%	2.36%	0.65%	6.71%

Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenue
= 100 × 3,972 ÷ 90,155 = 4.41%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 4,418 ÷ 90,155 = 4.90%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	FedEx Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Revenue	90,155)	93,512)	83,959)	69,217)	69,693)	65,450)
Total assets	87,143)	85,994)	82,777)	73,537)	54,403)	52,330)
Activity Ratio
Total asset turnover¹	1.03	1.09	1.01	0.94	1.28	1.25
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenue	90,155)	93,512)	83,959)	69,217)	69,693)	65,450)
Adjusted total assets	85,980)	84,787)	81,359)	72,190)	53,063)	51,067)
Activity Ratio
Adjusted total asset turnover²	1.05	1.10	1.03	0.96	1.31	1.28

Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).

2023 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 90,155 ÷ 87,143 = 1.03

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 90,155 ÷ 85,980 = 1.05

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	FedEx Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets	87,143)	85,994)	82,777)	73,537)	54,403)	52,330)
Common stockholders’ investment	26,088)	24,939)	24,168)	18,295)	17,757)	19,416)
Solvency Ratio
Financial leverage¹	3.34	3.45	3.43	4.02	3.06	2.70
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	85,980)	84,787)	81,359)	72,190)	53,063)	51,067)
Adjusted common stockholders’ investment	29,414)	27,825)	26,677)	20,110)	19,238)	21,020)
Solvency Ratio
Adjusted financial leverage²	2.92	3.05	3.05	3.59	2.76	2.43

Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Common stockholders’ investment
= 87,143 ÷ 26,088 = 3.34

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted common stockholders’ investment
= 85,980 ÷ 29,414 = 2.92

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	FedEx Corp. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income	3,972)	3,826)	5,231)	1,286)	540)	4,572)
Common stockholders’ investment	26,088)	24,939)	24,168)	18,295)	17,757)	19,416)
Profitability Ratio
ROE¹	15.23%	15.34%	21.64%	7.03%	3.04%	23.55%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	4,418)	4,148)	6,033)	1,634)	455)	4,389)
Adjusted common stockholders’ investment	29,414)	27,825)	26,677)	20,110)	19,238)	21,020)
Profitability Ratio
Adjusted ROE²	15.02%	14.91%	22.61%	8.13%	2.37%	20.88%

Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).

2023 Calculations

¹ ROE = 100 × Net income ÷ Common stockholders’ investment
= 100 × 3,972 ÷ 26,088 = 15.23%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted common stockholders’ investment
= 100 × 4,418 ÷ 29,414 = 15.02%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	FedEx Corp. adjusted ROE deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income	3,972)	3,826)	5,231)	1,286)	540)	4,572)
Total assets	87,143)	85,994)	82,777)	73,537)	54,403)	52,330)
Profitability Ratio
ROA¹	4.56%	4.45%	6.32%	1.75%	0.99%	8.74%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	4,418)	4,148)	6,033)	1,634)	455)	4,389)
Adjusted total assets	85,980)	84,787)	81,359)	72,190)	53,063)	51,067)
Profitability Ratio
Adjusted ROA²	5.14%	4.89%	7.42%	2.26%	0.86%	8.59%

Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 3,972 ÷ 87,143 = 4.56%

² Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 4,418 ÷ 85,980 = 5.14%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	FedEx Corp. adjusted ROA deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

FedEx Corp. (NYSE:FDX)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

FedEx Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

FedEx Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)