Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

FedEx Corp., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	May 31, 2025	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020
Current portion of long-term debt	1,428)	68)	126)	82)	146)	51)
Salaries	1,083)	757)	828)	751)	626)	436)
Employee benefits, including variable compensation	796)	977)	689)	834)	1,350)	319)
Compensated absences	852)	939)	958)	946)	927)	814)
Accrued salaries and employee benefits	2,731)	2,673)	2,475)	2,531)	2,903)	1,569)
Accounts payable	3,692)	3,189)	3,848)	4,030)	3,841)	3,269)
Current portion of operating lease liabilities	2,565)	2,463)	2,390)	2,443)	2,208)	1,923)
Self-insurance accruals	1,858)	1,931)	1,730)	1,646)	1,535)	1,223)
Taxes other than income taxes	372)	334)	305)	532)	637)	417)
Other	2,765)	2,697)	2,712)	3,010)	2,390)	1,892)
Accrued expenses	4,995)	4,962)	4,747)	5,188)	4,562)	3,532)
Current liabilities	15,411)	13,355)	13,586)	14,274)	13,660)	10,344)
Long-term debt, less current portion	19,151)	20,135)	20,453)	20,182)	20,733)	21,952)
Deferred income taxes	4,205)	4,482)	4,489)	4,093)	3,927)	3,162)
Pension, postretirement healthcare, and other benefit obligations	1,698)	2,010)	3,130)	4,448)	3,501)	5,019)
Self-insurance accruals	4,033)	3,701)	3,339)	2,889)	2,430)	2,104)
Operating lease liabilities, less current portion	14,272)	15,053)	15,363)	14,487)	13,375)	12,195)
Other liabilities	783)	689)	695)	682)	983)	466)
Other long-term liabilities	24,991)	25,935)	27,016)	26,599)	24,216)	22,946)
Long-term liabilities	44,142)	46,070)	47,469)	46,781)	44,949)	44,898)
Total liabilities	59,553)	59,425)	61,055)	61,055)	58,609)	55,242)
Common stock, $0.10 par value	32)	32)	32)	32)	32)	32)
Additional paid-in capital	4,290)	3,988)	3,769)	3,712)	3,481)	3,356)
Retained earnings	41,402)	38,649)	35,259)	32,782)	29,817)	25,216)
Accumulated other comprehensive loss	(1,362)	(1,359)	(1,327)	(1,103)	(732)	(1,147)
Treasury stock, at cost	(16,288)	(13,728)	(11,645)	(10,484)	(8,430)	(9,162)
Common stockholders’ investment	28,074)	27,582)	26,088)	24,939)	24,168)	18,295)
Total liabilities and common stockholders’ investment	87,627)	87,007)	87,143)	85,994)	82,777)	73,537)

Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 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).

Current Portion of Long-Term Debt: The current portion of long-term debt shows fluctuations over the observed periods, beginning at $51 million in 2020, peaking at $146 million in 2021, declining afterward and then rising sharply to $1,428 million in 2025. This sharp increase in 2025 suggests a significant repayment or restructuring requirement for long-term obligations within the upcoming year.
Salaries and Employee Benefits: Salaries have exhibited a generally increasing trend, rising from $436 million in 2020 to $1,083 million in 2025, despite a slight dip in 2024. Employee benefits, including variable compensation, show volatility with a peak at $1,350 million in 2021, dropping to $689 million in 2023 before rising again moderately to $796 million in 2025. Compensated absences remain relatively stable, hovering around $800 to $950 million.
Accrued Salaries and Employee Benefits: This line item experienced an increase from $1,569 million in 2020 to a peak of $2,903 million in 2021, followed by a downward trend to around $2,475 million in 2023 and a moderate rise to $2,731 million in 2025, indicating fluctuating accruals associated with personnel costs.
Accounts Payable and Accrued Expenses: Accounts payable rose from $3,269 million in 2020 to $4,030 million in 2022 before declining to $3,189 million in 2024, with a rebound to $3,692 million in 2025. Accrued expenses increased from $3,532 million in 2020 to a peak of $5,188 million in 2022, then declined and stabilized near $4,995 million in 2025. These trends reflect variable operational liabilities.
Operating Lease Liabilities: The current portion of operating lease liabilities increased steadily from $1,923 million in 2020 to $2,565 million in 2025. Similarly, long-term operating lease liabilities rose from $12,195 million to a peak of $15,363 million in 2023, then declined to $14,272 million in 2025, indicating ongoing commitments with some recent reductions in longer-term lease obligations.
Self-Insurance Accruals: Both current and long-term self-insurance accruals show consistent growth over the period. Current self-insurance accruals increased from $1,223 million in 2020 to $1,858 million in 2025, while long-term accruals rose from $2,104 million to $4,033 million. This indicates an increasing provisioning trend for self-insured risks.
Taxes Other Than Income Taxes: There is a pronounced fluctuation in taxes other than income taxes, with growth from $417 million in 2020 to $637 million in 2021, followed by a significant reduction to $305 million in 2023 and a recovery towards $372 million by 2025, suggesting variability in tax liabilities possibly influenced by operational results or tax regulations.
Other and Other Liabilities: Other current liabilities trended upwards initially, rising from $1,892 million in 2020 to $3,010 million in 2022, and then slightly decreasing to $2,765 million in 2025. Other long-term liabilities increased steadily from $22,946 million in 2020 to a peak of $27,016 million in 2023, followed by a decline to $24,991 million in 2025.
Current and Long-Term Liabilities: Current liabilities grew from $10,344 million in 2020 to $15,411 million in 2025, with fluctuations in between. Long-term debt, less the current portion, decreased steadily from $21,952 million to $19,151 million over the same timeframe. Total long-term liabilities showed a moderate rise until 2023 and then a decline to $44,142 million in 2025, reflecting debt management and repayment activities.
Pension, Postretirement Healthcare, and Other Benefit Obligations: This obligation declined significantly over the period, from $5,019 million in 2020 down to $1,698 million in 2025, indicating a reduction in these liabilities potentially due to funding, settlements, or actuarial gains.
Deferred Income Taxes: Deferred income taxes rose from $3,162 million in 2020 to a peak of $4,489 million in 2023, then declined slightly to $4,205 million in 2025, suggesting changes in timing differences associated with tax accounting.
Shareholders' Equity: Common stock remained unchanged at $32 million throughout. Additional paid-in capital increased steadily from $3,356 million in 2020 to $4,290 million in 2025. Retained earnings showed consistent growth, rising from $25,216 million in 2020 to $41,402 million in 2025, reflecting sustained profitability and earnings retention.
Accumulated Other Comprehensive Loss and Treasury Stock: Accumulated other comprehensive loss slightly increased in magnitude from -$1,147 million to -$1,362 million, indicating modest deterioration in this component. Treasury stock increased in cost from -$9,162 million in 2020 to -$16,288 million in 2025, reflecting ongoing share repurchases and capitalization changes.
Total Liabilities and Common Stockholders’ Investment: Total liabilities rose from $55,242 million in 2020 to a high of $61,055 million in 2022 and 2023 but then decreased to $59,553 million in 2025. Total common stockholders’ investment increased consistently from $18,295 million to $28,074 million, contributing to the overall growth in total liabilities and equity, which increased from $73,537 million to $87,627 million over the period.
Summary: The financial data indicate a company managing rising personnel costs and liabilities associated with leases, self-insurance, and accrued expenses. Notable is the large increase in the current portion of long-term debt in 2025, signaling imminent repayments. Improvements in retained earnings and paid-in capital enhance equity, while long-term debt shows moderate reductions. Pension-related liabilities have declined substantially, and treasury stock activity suggests active share repurchase programs. Overall, the balance sheet shows growth in size with fluctuating components that reflect operational adjustments and financial management actions.

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FedEx Corp. (NYSE:FDX)

Balance Sheet: Liabilities and Stockholders’ Equity