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89
SELECTED FINANCIAL DATA
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, 2006. 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) 2006(1) 2005(2) 2004(3) 2003 2002
Operating Results
Revenues $32,294 $29,363 $24,710 $22,487 $20,607
Operating income 3,014 2,471 1,440 1,471 1,321
Income before income taxes 2,899 2,313 1,319 1,338 1,160
Income before cumulative effect of change in
accounting principle 1,806 1,449 838 830 725
Cumulative effect of change in accounting for goodwill(4) ––––(15)
Net income $ 1,806 $ 1,449 $ 838 $ 830 $ 710
Per Share Data
Earnings per share:
Basic:
Income before cumulative effect of change in
accounting principle $ 5.94 $ 4.81 $ 2.80 $ 2.79 $ 2.43
Cumulative effect of change in accounting
for goodwill(4) –– – – (0.05)
$ 5.94 $ 4.81 $ 2.80 $ 2.79 $ 2.38
Assuming dilution:
Income before cumulative effect of change in
accounting principle $ 5.83 $ 4.72 $ 2.76 $ 2.74 $ 2.39
Cumulative effect of change in accounting
for goodwill(4) –– – – (0.05)
$ 5.83 $ 4.72 $ 2.76 $ 2.74 $ 2.34
Average shares of common stock outstanding 304 301 299 298 298
Average common and common equivalent
shares outstanding 310 307 304 303 303
Cash dividends declared $ 0.33 $ 0.29 $ 0.29 $ 0.15 $ 0.05
Financial Position
Property and equipment, net $10,770 $ 9,643 $ 9,037 $ 8,700 $ 8,302
Total assets 22,690 20,404 19,134 15,385 13,812
Long-term debt, less current portion 1,592 2,427 2,837 1,709 1,800
Common stockholders’ investment 11,511 9,588 8,036 7,288 6,545
Other Operating Data
FedEx Express aircraft fleet 671 670 645 643 647
Average full-time equivalent employees and contractors 221,677 215,838 195,838 190,918 184,953
(1) Results for 2006 include a $79 million ($49 million, net of tax, or $0.16 per share) one-time, noncash charge to adjust the accounting for certain facility leases. See Note 8 to the accom-
panying consolidated financial statements.
(2) Results for 2005 include $48 million ($31 million, net of tax, or $0.10 per diluted share) related to the Airline Stabilization Act charge. See Note 1 to the accompanying consolidated financial
statements. Results for 2005 also 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 state-
ments. Additionally, FedEx Kinko’s financial results have been included from February 12, 2004 (the date of acquisition). See Note 3 to the accompanying consolidated financial
statements. A $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
was also included in the 2004 results. See Note 12 to the accompanying consolidated financial statements.
(4) 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.