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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SELECTED FINANCIAL DATA
The following table sets forth certain selected consolidated financial and operating data for FedEx as of and for the five years ended
May 31, 2005. This information should be read in conjunction with the Consolidated Financial Statements, Management’s Discussion and
Analysis of Results of Operations and Financial Condition and other financial data appearing elsewhere in this Report.
(In millions, except per share amounts and other operating data) 2005(1)(2) 2004(3)(4)(5) 2003 2002 2001(6) (7)
Operating Results
Revenues $29,363 $24,710 $22,487 $ 20,607 $19,629
Operating income 2,471 1,440 1,471 1,321 1,071
Income before income taxes 2,313 1,319 1,338 1,160 927
Income before cumulative effect of change in accounting principle 1,449 838 830 725 584
Cumulative effect of change in accounting for goodwill(8) –– – (15) –
Net income $ 1,449 $ 838 $ 830 $ 710 $ 584
Per Share Data
Earnings per share:
Basic:
Income before cumulative effect of change in
accounting principle $ 4.81 $ 2.80 $ 2.79 $ 2.43 $ 2.02
Cumulative effect of change in accounting for goodwill(8) –– – (0.05) –
$ 4.81 $ 2.80 $ 2.79 $ 2.38 $ 2.02
Assuming dilution:
Income before cumulative effect of change in
accounting principle $ 4.72 $ 2.76 $ 2.74 $ 2.39 $ 1.99
Cumulative effect of change in accounting for goodwill(8) –– – (0.05) –
$ 4.72 $ 2.76 $ 2.74 $ 2.34 $ 1.99
Average shares of common stock outstanding 301 299 298 298 289
Average common and common equivalent shares outstanding 307 304 303 303 293
Cash dividends declared $ 0.29 $ 0.29 $ 0.15 $ 0.05 –
Financial Position
Property and equipment, net $ 9,643 $ 9,037 $ 8,700 $ 8,302 $ 8,100
Total assets 20,404 19,134 15,385 13,812 13,392
Long-term debt, less current portion 2,427 2,837 1,709 1,800 1,900
Common stockholders’ investment 9,588 8,036 7,288 6,545 5,900
Other Operating Data
FedEx Express aircraft fleet 670 645 643 647 640
Average full-time equivalent employees and contractors 215,838 195,838 190,918 184,953 176,960
(1) Results for 2005 include $48 million ($31 million, net of tax, $0.10 per diluted share) related to an Airline Stabilization Act charge. See Note 1 to the accompanying consolidated
financial statements.
(2) Results for 2005 include a $12 million or $0.04 per diluted share benefit from an income tax adjustment. See Note 12 to the accompanying consolidated financial statements.
(3) Results for 2004 include $435 million ($270 million, net of tax, or $0.89 per diluted share) of business realignment costs. See Note 5 to the accompanying consolidated financial statements.
(4) Results for 2004 include the financial results of FedEx Kinko’s from February 12, 2004 (the date of acquisition). See Note 3 to the accompanying consolidated financial statements.
(5) Results for 2004 include $37 million, net of tax, or $0.12 per diluted share benefit related to a favorable ruling on an aircraft engine maintenance tax case and the reduction of our
effective tax rate. See Note 12 to the accompanying consolidated financial statements.
(6) Results for 2001 include the financial results of FedEx Freight East from January 1, 2001 (the date of acquisition for financial reporting purposes).
(7) Results for 2001 include asset impairment charges of $102 million ($65 million, net of tax, or $0.22 per diluted share) at FedEx Express and reorganization costs of $22 million ($14 million,
net of tax, or $0.05 per diluted share) at FedEx Supply Chain Services.
(8) Results for 2002 reflect our adoption of SFAS 142, “Goodwill and Other Intangible Assets.” We recognized an adjustment of $25 million ($15 million, net of tax, or $0.05 per share) to
reduce the carrying value of certain goodwill to its implied fair value.
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