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18
MANAGEMENT’S DISCUSSION AND ANALYSIS
The following table compares selected statistics (in thousands, except
yield amounts) for the years ended May 31:
Percent of Revenue
2011 2010 2009
Operating expenses:
Salaries and employee benefits 37.4 % 39.0 % 36.7 %
Purchased transportation 6.4 5.5 5.0
Rentals and landing fees 6.8 7.3 7.2
Depreciation and amortization 4.3 4.7 4.3
Fuel 14.4 12.3 14.7
Maintenance and repairs 5.5 5.2 6.0
Impairment and other charges – – 1.2
(1)
Intercompany charges 8.3 9.0 9.4
Other 11.9
(2) 11.8 11.9
Total operating expenses 95.0 94.8 96.4
Operating margin 5.0 % 5.2 % 3.6 %
(1) Includes a charge of $260 million related to aircraft–related asset impairments and other
charges primarily associated with aircraft–related lease and contract termination costs
and employee severance.
(2) Includes a $66 million legal reserve associated with the ATA Airlines lawsuit.
Percent Change
2011 2010 2009
2011
2010
/2010
2009
/
Package Statistics(1)
Average daily package
volume (ADV):
U.S. overnight box 1,184 1,157 1,127 2 3
U.S. overnight envelope 627 614 627 2 (2)
U.S. deferred 873 867 849 1 2
Total U.S. domestic ADV 2,684 2,638 2,603 2 1
International priority 575 523 475 10 10
International domestic(2) 348 318 298 9 7
Total ADV 3,607 3,479 3,376 4 3
Revenue per package (yield):
U.S. overnight box $ 20.29 $ 19.00 $ 21.21 7 (10)
U.S. overnight envelope 10.86 10.47 11.65 4 (10)
U.S. deferred 12.60 11.70 12.94 8 (10)
U.S. domestic composite 15.59 14.61 16.21 7 (10)
International priority 56.08 53.10 57.81 6 (8)
International domestic(2) 7.38 7.14 7.50 3 (5)
Composite package yield 21.25 19.72 21.30 8 (7)
Freight Statistics(1)
Average daily freight pounds:
U.S. 7,340 7,141 7,287 3 (2)
International priority 3,184 2,544 1,959 25 30
International airfreight 1,235 1,222 1,475 1 (17)
Total average daily
freight pounds 11,759 10,907 10,721 8 2
Revenue per pound (yield):
U.S. $ 1.17 $ 1.09 $ 1.17 7 (7)
International priority 2.12 2.01 2.22 5 (9)
International airfreight 0.90 0.81 0.99 11 (18)
Composite freight yield 1.40 1.27 1.34 10 (5)
(1) Package and freight statistics include only the operations of FedEx Express.
(2) International domestic statistics include our international intra–country domestic
express operations.