þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware
(State or other jurisdiction of incorporation or organization) |
62-1721435
(I.R.S. Employer Identification No.) |
|
942 South Shady Grove Road
Memphis, Tennessee (Address of principal executive offices) |
38120
(ZIP Code) |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
Common Stock
Common Stock, par value $0.10 per share |
Outstanding Shares at March 15, 2010
313,190,004 |
PAGE | ||||||||
PART I. FINANCIAL INFORMATION
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ITEM 1. Financial Statements
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PART II. OTHER INFORMATION
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E-1 | ||||||||
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Exhibit 10.1 | ||||||||
Exhibit 10.2 | ||||||||
Exhibit 10.3 | ||||||||
Exhibit 10.4 | ||||||||
Exhibit 10.5 | ||||||||
Exhibit 10.6 | ||||||||
Exhibit 12.1 | ||||||||
Exhibit 15.1 | ||||||||
Exhibit 31.1 | ||||||||
Exhibit 31.2 | ||||||||
Exhibit 32.1 | ||||||||
Exhibit 32.2 | ||||||||
EX-101 INSTANCE DOCUMENT | ||||||||
EX-101 SCHEMA DOCUMENT | ||||||||
EX-101 CALCULATION LINKBASE DOCUMENT | ||||||||
EX-101 LABELS LINKBASE DOCUMENT | ||||||||
EX-101 PRESENTATION LINKBASE DOCUMENT |
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February 28,
2010
May 31,
(Unaudited)
2009
$
1,549
$
2,292
3,937
3,391
380
367
517
511
300
555
6,683
7,116
30,675
29,260
16,672
15,843
14,003
13,417
2,229
2,229
833
311
1,128
1,171
4,190
3,711
$
24,876
$
24,244
Table of Contents
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN MILLIONS, EXCEPT SHARE DATA)
Table of Contents
Three Months Ended
Nine Months Ended
February 28,
February 28,
2010
2009
2010
2009
$
8,701
$
8,137
$
25,306
$
27,645
3,549
3,414
10,350
10,502
1,220
1,060
3,429
3,519
593
609
1,764
1,838
488
496
1,470
1,479
810
636
2,220
3,270
404
449
1,215
1,507
1,221
1,291
3,556
3,934
8,285
7,955
24,004
26,049
416
182
1,302
1,596
(19
)
(19
)
(52
)
(38
)
(16
)
(4
)
(28
)
(7
)
(35
)
(23
)
(80
)
(45
)
381
159
1,222
1,551
142
62
457
577
$
239
$
97
$
765
$
974
$
0.76
$
0.31
$
2.44
$
3.13
$
0.76
$
0.31
$
2.43
$
3.12
$
0.11
$
0.11
$
0.44
$
0.44
Table of Contents
Nine Months Ended
February 28,
2010
2009
$
765
$
974
1,470
1,479
100
128
80
78
183
71
(645
)
550
238
104
288
(794
)
(571
)
(369
)
1,908
2,221
(1,981
)
(1,987
)
31
35
(1,950
)
(1,952
)
1,000
(632
)
(1
)
36
10
9
1
(103
)
(103
)
(16
)
(7
)
(706
)
900
5
(35
)
(743
)
1,134
2,292
1,539
$
1,549
$
2,673
Table of Contents
Table of Contents
Three Months Ended
Nine Months Ended
2010
2009
2010
2009
$
22
$
22
$
80
$
78
2010
2009
4,886,320
2,144,784
$
20.22
$
24.06
Table of Contents
2010
2009
5.7 years
5.5 years
32
%
23
%
3.25
%
3.33
%
0.749
%
0.472
%
Three Months Ended
2010
2009
$
239
$
97
(28
)
(3
)
(11
)
$
211
$
83
Nine Months Ended
2010
2009
$
765
$
974
9
(182
)
2
(33
)
$
776
$
759
Table of Contents
Three Months Ended
Nine Months Ended
2010
2009
2010
2009
$
238
$
96
$
763
$
972
312
311
312
311
$
0.76
$
0.31
$
2.44
$
3.13
$
238
$
96
$
763
$
972
312
311
312
311
3
1
2
1
315
312
314
312
$
0.76
$
0.31
$
2.43
$
3.12
9.7
13.9
12.3
11.6
Three Months Ended
Nine Months Ended
2010
2009
2010
2009
$
75
$
42
$
226
$
131
41
51
86
210
11
14
32
43
$
127
$
107
$
344
$
384
Table of Contents
Three Months Ended
Nine Months Ended
2010
2009
2010
2009
$
105
$
125
$
313
$
376
206
200
617
601
(239
)
(265
)
(716
)
(796
)
3
(18
)
12
(50
)
$
75
$
42
$
226
$
131
$
6
$
8
$
18
$
23
8
8
23
25
(3
)
(2
)
(9
)
(5
)
$
11
$
14
$
32
$
43
Table of Contents
FedEx Express (express transportation)
FedEx Trade Networks (global trade services)
FedEx SupplyChain Systems (logistics services)
FedEx Ground (small-package ground delivery)
FedEx SmartPost (small-parcel consolidator)
FedEx Freight LTL Group:
FedEx Freight (regional LTL freight transportation)
FedEx National LTL (long-haul LTL freight transportation)
FedEx Custom Critical (time-critical transportation)
FedEx Services (sales, marketing and information technology functions)
FedEx Office and Print Services, Inc. (FedEx Office) (document and
business services and package acceptance)
FedEx Customer Information Services (FCIS) (customer service,
billings and collections)
Table of Contents
Three Months Ended
Nine Months Ended
2010
2009
2010
2009
$
5,440
$
5,050
$
15,678
$
17,567
1,910
1,793
5,477
5,343
1,040
914
3,090
3,467
406
458
1,322
1,499
(95
)
(78
)
(261
)
(231
)
$
8,701
$
8,137
$
25,306
$
27,645
$
265
$
45
$
714
$
930
258
196
705
604
(107
)
(59
)
(117
)
62
$
416
$
182
$
1,302
$
1,596
(1)
The normal, ongoing net operating costs of the FedEx Services segment are allocated back to the transportation segments.
Table of Contents
Aircraft-
Aircraft
(1)
Related
(2)
Other
(3)
Total
$
53
$
100
$
220
$
373
789
47
230
1,066
585
10
167
762
365
19
65
449
466
14
480
1,923
126
2,049
(1)
Our obligation to purchase 15 of these aircraft (Boeing 777
Freighters, or B777Fs) is conditioned upon there being no event
that causes FedEx Express or its employees not to be covered by
the Railway Labor Act of 1926, as amended.
(2)
Primarily aircraft modifications.
(3)
Primarily vehicles, facilities, advertising and promotions
contracts, and for the remainder of 2010, a total of $117 million
of quarterly contributions to our U.S. domestic pension plans.
Table of Contents
B757
B777F
(1)
Total
1
1
18
4
22
8
4
12
2
2
3
3
13
13
26
27
53
(1)
Our obligation to purchase 15 of these aircraft is
conditioned upon there being no event that causes FedEx
Express or its employees not to be covered by the Railway
Labor Act of 1926, as amended.
Operating Leases
Aircraft
Total
Capital
and Related
Facilities
Operating
Leases
Equipment
and Other
Leases
$
24
$
105
$
326
$
431
20
526
1,220
1,746
8
504
1,052
1,556
119
499
903
1,402
1
473
767
1,240
16
2,458
5,192
7,650
188
$
4,565
$
9,460
$
14,025
26
$
162
Table of Contents
Table of Contents
2010
2009
$
101
$
68
$
182
$
464
(276
)
(6
)
$
(94
)
$
458
Table of Contents
Table of Contents
(UNAUDITED)
February 28, 2010
Table of Contents
May 31, 2009
Table of Contents
(UNAUDITED)
Three Months Ended February 28, 2010
Guarantor
Non-guarantor
Parent
Subsidiaries
Subsidiaries
Eliminations
Consolidated
$
$
7,360
$
1,424
$
(83
)
$
8,701
20
3,053
476
3,549
887
360
(27
)
1,220
1
532
61
(1
)
593
438
50
488
769
41
810
1
373
30
404
(49
)
(57
)
106
27
993
256
(55
)
1,221
6,988
1,380
(83
)
8,285
372
44
416
239
26
(265
)
(24
)
8
(3
)
(19
)
27
(36
)
9
(3
)
(13
)
(16
)
239
357
50
(265
)
381
119
23
142
$
239
$
238
$
27
$
(265
)
$
239
(UNAUDITED)
Three Months Ended February 28, 2009
Guarantor
Non-guarantor
Parent
Subsidiaries
Subsidiaries
Eliminations
Consolidated
$
$
6,994
$
1,204
$
(61
)
$
8,137
19
2,889
506
3,414
817
253
(10
)
1,060
1
538
71
(1
)
609
429
67
496
597
39
636
1
416
32
449
(44
)
52
(8
)
23
1,066
252
(50
)
1,291
6,804
1,212
(61
)
7,955
190
(8
)
182
97
(8
)
(89
)
(23
)
7
(3
)
(19
)
24
(30
)
6
(1
)
(1
)
(2
)
(4
)
97
158
(7
)
(89
)
159
56
6
62
$
97
$
102
$
(13
)
$
(89
)
$
97
Table of Contents
(UNAUDITED)
Nine Months Ended February 28, 2010
Guarantor
Non-guarantor
Parent
Subsidiaries
Subsidiaries
Eliminations
Consolidated
$
$
21,451
$
4,094
$
(239
)
$
25,306
69
8,881
1,400
10,350
2,520
972
(63
)
3,429
3
1,586
177
(2
)
1,764
1
1,312
157
1,470
2,107
113
2,220
1
1,124
90
1,215
(149
)
(86
)
235
75
2,918
737
(174
)
3,556
20,362
3,881
(239
)
24,004
1,089
213
1,302
765
102
(867
)
(76
)
34
(10
)
(52
)
86
(111
)
25
(10
)
(17
)
(1
)
(28
)
765
1,097
227
(867
)
1,222
374
83
457
$
765
$
723
$
144
$
(867
)
$
765
(UNAUDITED)
Nine Months Ended February 28, 2009
Guarantor
Non-guarantor
Parent
Subsidiaries
Subsidiaries
Eliminations
Consolidated
$
$
23,165
$
4,689
$
(209
)
$
27,645
63
8,700
1,739
10,502
2,585
965
(31
)
3,519
3
1,607
230
(2
)
1,838
1
1,271
207
1,479
3,046
224
3,270
1
1,395
111
1,507
(149
)
3
146
81
3,216
813
(176
)
3,934
21,823
4,435
(209
)
26,049
1,342
254
1,596
974
137
(1,111
)
(45
)
17
(10
)
(38
)
60
(82
)
22
(15
)
(3
)
11
(7
)
974
1,411
277
(1,111
)
1,551
475
102
577
$
974
$
936
$
175
$
(1,111
)
$
974
Table of Contents
(UNAUDITED)
Nine Months Ended February 28, 2010
Guarantor
Non-guarantor
Parent
Subsidiaries
Subsidiaries
Eliminations
Consolidated
$
(349
)
$
1,778
$
483
$
(4
)
$
1,908
(1,860
)
(121
)
(1,981
)
35
(4
)
31
(1,825
)
(125
)
(1,950
)
77
55
(132
)
42
(42
)
103
(103
)
(500
)
(132
)
(632
)
36
36
9
9
(103
)
(103
)
(16
)
(5
)
5
(16
)
(497
)
63
(272
)
(706
)
(1
)
6
5
(846
)
15
92
(4
)
(743
)
1,768
272
304
(52
)
2,292
$
922
$
287
$
396
$
(56
)
$
1,549
(UNAUDITED)
Nine Months Ended February 28, 2009
Guarantor
Non-guarantor
Parent
Subsidiaries
Subsidiaries
Eliminations
Consolidated
$
(383
)
$
2,210
$
415
$
(21
)
$
2,221
(1,810
)
(177
)
(1,987
)
28
7
35
(1,782
)
(170
)
(1,952
)
635
(541
)
(94
)
17
(17
)
20
(20
)
123
(123
)
1,000
1,000
(1
)
(1
)
10
10
1
1
(103
)
(103
)
(7
)
(7
)
1,553
(398
)
(255
)
900
(12
)
(23
)
(35
)
1,170
18
(33
)
(21
)
1,134
1,101
166
272
1,539
$
2,271
$
184
$
239
$
(21
)
$
2,673
Table of Contents
PUBLIC ACCOUNTING FIRM
FedEx Corporation
March 19, 2010
Table of Contents
the overall customer demand for our various services;
the volumes of transportation services provided through our networks, primarily measured by
our average daily volume and shipment weight;
the mix of services purchased by our customers;
the prices we obtain for our services, primarily measured by yield (revenue per package or
pound or revenue per hundredweight for LTL freight shipments);
our ability to manage our cost structure (capital expenditures and operating expenses) to
match shifting volume levels; and
the timing and amount of fluctuations in fuel prices and our ability to recover incremental
fuel costs through our fuel surcharges.
Table of Contents
Three Months Ended
Percent
Nine Months Ended
Percent
2010
2009
Change
2010
2009
Change
$
8,701
$
8,137
7
$
25,306
$
27,645
(8
)
416
182
129
1,302
1,596
(18
)
4.8
%
2.2
%
260
bp
5.1
%
5.8
%
(70
) bp
$
239
$
97
146
$
765
$
974
(21
)
$
0.76
$
0.31
145
$
2.43
$
3.12
(22
)
Change in
Percent Change in
Change in
Percent Change in
Revenue
Revenue
Operating Income
Operating Income
Three
Nine
Three
Nine
Three
Nine
Three
Nine
Months
Months
Months
Months
Months
Months
Months
Months
Ended
Ended
Ended
Ended
Ended
Ended
Ended
Ended
$
390
$
(1,889
)
8
(11
)
$
220
$
(216
)
489
(23
)
117
134
7
3
62
101
32
17
126
(377
)
14
(11
)
(48
)
(179
)
(81
)
(289
)
(52
)
(177
)
(11
)
(12
)
(17
)
(30
)
NM
NM
$
564
$
(2,339
)
7
(8
)
$
234
$
(294
)
129
(18
)
Table of Contents
(1)
Package statistics do not include the operations of FedEx SmartPost.
Table of Contents
(1)
Package statistics do not include the operations of FedEx SmartPost.
Table of Contents
Three Months Ended
Nine Months Ended
2010
2009
2010
2009
$
3,549
$
3,414
$
10,350
$
10,502
1,220
1,060
3,429
3,519
593
609
1,764
1,838
488
496
1,470
1,479
810
636
2,220
3,270
404
449
1,215
1,507
1,221
1,291
3,556
3,934
$
8,285
$
7,955
$
24,004
$
26,049
Percent of Revenue
(1)
Percent of Revenue
(1)
Three
Three
Nine
Nine
Months
Months
Months
Months
Ended
Ended
Ended
Ended
2010
2009
2010
2009
40.8
%
42.0
%
40.9
%
38.0
%
14.0
13.0
13.5
12.7
6.8
7.5
7.0
6.6
5.6
6.1
5.8
5.4
9.3
7.8
8.8
11.8
4.7
5.5
4.8
5.5
14.0
15.9
14.1
14.2
95.2
97.8
94.9
94.2
4.8
%
2.2
%
5.1
%
5.8
%
(1)
Given the fixed-cost structure of our transportation networks, the
year-over-year comparison of our operating expenses as a percentage of revenue has been affected by
a number of factors, including the impact of lower fuel surcharges, weak economic conditions and
our cost-containment activities. Collectively, these factors have distorted the comparability of
certain of our operating expense captions on a relative basis.
Table of Contents
Table of Contents
Table of Contents
Table of Contents
FedEx Express (express transportation)
FedEx Trade Networks (global trade services)
FedEx SupplyChain Systems (logistics services)
FedEx Ground (small-package ground delivery)
FedEx SmartPost (small-parcel consolidator)
FedEx Freight LTL Group:
FedEx Custom Critical (time-critical transportation)
FedEx Services (sales, marketing and information technology functions)
FedEx Office (document and business
services and package acceptance)
FedEx Customer Information Services
(FCIS) (customer service, billings and collections)
Table of Contents
Table of Contents
Three Months Ended
Percent
Nine Months Ended
Percent
2010
2009
Change
2010
2009
Change
$
1,413
$
1,410
$
4,116
$
4,740
(13
)
400
426
(6
)
1,203
1,437
(16
)
692
682
1
1,919
2,184
(12
)
2,505
2,518
(1
)
7,238
8,361
(13
)
1,748
1,507
16
5,105
5,481
(7
)
142
117
21
427
445
(4
)
4,395
4,142
6
12,770
14,287
(11
)
525
523
1,464
1,715
(15
)
329
221
49
910
884
3
61
69
(12
)
185
311
(41
)
915
813
13
2,559
2,910
(12
)
130
95
37
349
370
(6
)
5,440
5,050
8
15,678
17,567
(11
)
2,136
2,064
3
6,215
6,252
(1
)
292
241
21
830
871
(5
)
397
400
(1
)
1,178
1,220
(3
)
254
241
5
757
721
5
694
551
26
1,903
2,823
(33
)
261
318
(18
)
789
1,093
(28
)
497
530
(6
)
1,436
1,595
(10
)
644
660
(2
)
1,856
2,062
(10
)
5,175
5,005
3
14,964
16,637
(10
)
$
265
$
45
489
$
714
$
930
(23
)
4.9
%
0.9
%
400
bp
4.6
%
5.3
%
(70
) bp
(1)
International domestic revenues include our international domestic express
operations, primarily in the United Kingdom, Canada, China, India and Mexico.
(2)
Other revenues includes FedEx Trade Networks and, beginning in the second
quarter of 2010, FedEx SupplyChain Systems.
Table of Contents
Percent of Revenue
(1)
Percent of Revenue
(1)
Three
Three
Nine
Nine
Months
Months
Months
Months
Ended
Ended
Ended
Ended
2010
2009
2010
2009
39.3
%
40.9
%
39.7
%
35.6
%
5.4
4.8
5.3
5.0
7.3
7.9
7.5
6.9
4.7
4.8
4.8
4.1
12.7
10.9
12.1
16.1
4.8
6.3
5.0
6.2
9.1
10.5
9.2
9.1
11.8
13.0
11.8
11.7
95.1
99.1
95.4
94.7
4.9
%
0.9
%
4.6
%
5.3
%
(1)
Given the fixed-cost structure of our transportation networks, the
year-over-year comparison of our operating expenses as a percentage of revenue has been affected by
a number of factors, including the impact of lower fuel surcharges, weak economic conditions and
our cost-containment activities. Collectively, these factors have distorted the comparability of
certain of our operating expense captions on a relative basis.
Three Months Ended
Percent
Nine Months Ended
Percent
2010
2009
Change
2010
2009
Change
1,190
1,177
1
1,157
1,122
3
601
622
(3
)
608
621
(2
)
949
907
5
876
855
2
2,740
2,706
1
2,641
2,598
2
530
450
18
511
482
6
317
281
13
315
300
5
3,587
3,437
4
3,467
3,380
3
$
19.16
$
19.02
1
$
18.73
$
22.24
(16
)
10.70
10.85
(1
)
10.41
12.18
(15
)
11.77
11.94
(1
)
11.53
13.44
(14
)
14.74
14.77
14.43
16.94
(15
)
53.23
53.12
52.59
59.89
(12
)
7.22
6.63
9
7.12
7.81
(9
)
19.76
19.13
3
19.39
22.25
(13
)
7,906
7,664
3
7,217
7,431
(3
)
2,577
1,590
62
2,427
2,041
19
1,184
1,251
(5
)
1,230
1,575
(22
)
11,667
10,505
11
10,874
11,047
(2
)
$
1.07
$
1.08
(1
)
$
1.07
$
1.22
(12
)
2.06
2.21
(7
)
1.97
2.28
(14
)
0.84
0.88
(5
)
0.79
1.04
(24
)
1.26
1.23
2
1.24
1.39
(11
)
(1)
Package and freight statistics include only the operations of FedEx Express.
(2)
International domestic statistics include our international domestic express
operations, primarily in the United Kingdom, Canada, China, India and Mexico.
Table of Contents
Three Months Ended
Nine Months Ended
2010
2009
2010
2009
6.50
%
1.00
%
1.00
%
1.00
%
8.50
15.00
8.50
34.50
7.42
8.24
5.70
23.06
6.50
1.00
1.00
1.00
13.00
15.00
13.00
34.50
10.25
10.57
9.09
20.37
Table of Contents
Three Months Ended
Percent
Nine Months Ended
Percent
2010
2009
Change
2010
2009
Change
$
1,910
$
1,793
7
$
5,477
$
5,343
3
289
278
4
859
824
4
771
725
6
2,197
2,241
(2
)
63
58
9
184
167
10
83
85
(2
)
251
246
2
3
3
NM
6
8
NM
41
35
17
119
109
9
207
180
15
587
538
9
195
233
(16
)
569
606
(6
)
1,652
1,597
3
4,772
4,739
1
$
258
$
196
32
$
705
$
604
17
13.5
%
10.9
%
260
bp
12.9
%
11.3
%
160
bp
3,674
3,511
5
3,526
3,440
3
1,489
1,020
46
1,248
790
58
$
7.75
$
7.62
2
$
7.63
$
7.72
(1
)
$
1.59
$
1.67
(5
)
$
1.53
$
1.92
(20
)
Table of Contents
Percent of Revenue
Percent of Revenue
Three
Three
Nine
Nine
Months
Months
Months
Months
Ended
Ended
Ended
Ended
2010
2009
2010
2009
15.1
%
15.5
%
15.7
%
15.4
%
40.4
40.4
40.1
42.0
3.3
3.2
3.3
3.1
4.3
4.8
4.6
4.6
0.2
0.2
0.1
0.2
2.2
2.0
2.2
2.0
10.8
10.0
10.7
10.1
10.2
13.0
10.4
11.3
86.5
89.1
87.1
88.7
13.5
%
10.9
%
12.9
%
11.3
%
Three Months Ended
Nine Months Ended
2010
2009
2010
2009
4.00
%
3.25
%
2.75
%
3.25
%
5.00
6.75
5.00
10.50
4.61
5.07
3.86
7.93
Table of Contents
We have an ongoing nationwide program to provide greater incentives to contractors who
choose to grow their businesses by adding routes.
During 2009, because of state-specific legal and regulatory issues, we offered special
incentives to encourage each New Hampshire-based and Maryland-based single-route
pickup-and-delivery contractor to assume responsibility for the pickup-and-delivery operations
of an entire geographic service area that includes multiple routes.
As of February 28, 2010, approximately 65% of all service areas nationwide are supported by
multiple-route contractors, which comprise approximately 38% of all FedEx Ground
pickup-and-delivery contractors.
Table of Contents
Three Months Ended
Percent
Nine Months Ended
Percent
2010
2009
(2)
Change
2010
2009
(2)
Change
$
1,040
$
914
14
$
3,090
$
3,467
(11
)
532
529
1
1,552
1,735
(11
)
191
104
84
477
435
10
29
34
(15
)
85
102
(17
)
49
59
(17
)
150
166
(10
)
112
83
35
310
439
(29
)
36
33
9
105
117
(10
)
99
29
241
249
80
211
99
102
(3
)
279
331
(16
)
1,147
973
18
3,207
3,405
(6
)
$
(107
)
$
(59
)
(81
)
$
(117
)
$
62
(289
)
(10.3
)%
(6.5
)%
(380
) bp
(3.8
)%
1.8
%
(560
) bp
83.4
66.0
26
79.1
76.4
4
1,133
1,121
1
1,124
1,129
$
16.82
$
18.21
(8
)
$
17.24
$
19.46
(11
)
(1)
Certain functions were transferred from the FedEx Freight segment to FedEx Services and FCIS effective August 1, 2009 (as described below). For 2010, the costs associated with these functions, previously a direct
charge, are being allocated to the FedEx Freight segment through intercompany allocations.
(2)
Includes Caribbean Transportation Services, which was merged into FedEx Express effective June 1, 2009.
Table of Contents
Percent of Revenue
(2)
Percent of Revenue
(2)
Three
Three
Nine
Nine
Months
Months
Months
Months
Ended
Ended
Ended
Ended
2010
2009
2010
2009
51.1
%
57.9
%
50.2
%
50.0
%
18.4
11.4
15.4
12.6
2.8
3.7
2.8
2.9
4.7
6.4
4.9
4.8
10.8
9.1
10.0
12.7
3.5
3.6
3.4
3.4
9.5
3.2
8.1
2.3
9.5
11.2
9.0
9.5
110.3
106.5
103.8
98.2
(10.3
)%
(6.5
)%
(3.8
)%
1.8
%
(1)
Certain functions were transferred from the FedEx Freight segment to FedEx Services and FCIS effective August 1, 2009 (as described below). For 2010, the costs associated with these functions, previously a direct charge, are being
allocated to the FedEx Freight segment through intercompany allocations.
(2)
Due to the fixed-cost structure of our transportation networks, the year-over-year comparison of our operating expenses as a percentage of revenue has been affected by a number of factors, including the impact of lower fuel
surcharges, the competitive pricing environment, weak economic conditions and our cost-containment activities. Collectively, these factors have distorted the comparability of certain of our operating expense captions on a relative
basis.
Three Months Ended
Nine Months Ended
2010
2009
2010
2009
13.60
%
9.20
%
10.80
%
9.20
%
14.80
12.80
14.80
23.90
14.30
10.60
13.40
17.50
Table of Contents
Table of Contents
2010
2009
$
765
$
974
1,833
1,756
(690
)
(509
)
1,908
2,221
(1,950
)
(1,952
)
(1,950
)
(1,952
)
1,000
(632
)
(1
)
(103
)
(103
)
36
10
(7
)
(6
)
(706
)
900
5
(35
)
$
(743
)
$
1,134
Table of Contents
Percent Change
2010/2009
Three Months Ended
Nine Months Ended
Three Months
Nine Months
2010
2009
2010
2009
Ended
Ended
$
158
$
233
$
1,018
$
759
(32
)
34
138
200
491
595
(31
)
(17
)
77
73
192
214
5
(10
)
32
53
193
284
(40
)
(32
)
27
41
87
135
(34
)
(36
)
$
432
$
600
$
1,981
$
1,987
(28
)
226
334
1,245
1,088
(32
)
14
87
163
303
512
(47
)
(41
)
28
58
200
215
(52
)
(7
)
91
45
233
172
102
35
$
432
$
600
$
1,981
$
1,987
(28
)
Table of Contents
Table of Contents
Payments Due by Fiscal Year (Undiscounted)
(in millions)
2010
(1)
2011
2012
2013
2014
Thereafter
Total
$
431
$
1,746
$
1,556
$
1,402
$
1,240
$
7,650
$
14,025
97
228
166
65
14
126
696
12
144
125
98
97
1,815
2,291
117
117
153
836
595
384
466
1,923
4,357
7
2
1
10
250
300
250
989
1,789
24
20
8
119
1
16
188
$
841
$
3,226
$
2,451
$
2,368
$
2,068
$
12,519
$
23,473
(1)
Cash obligations for the remainder of 2010.
Table of Contents
Table of Contents
economic conditions in the global markets in which we operate;
the impact of any international conflicts or terrorist activities on the United States and
global economies in general, the transportation industry or us in particular, and what effects
these events will have on our costs or the demand for our services;
damage to our reputation or loss of brand equity;
disruptions to the Internet or our technology infrastructure, including those impacting our
computer systems and Web site, which can adversely affect shipment levels;
the price and availability of jet and vehicle fuel;
the impact of intense competition on our ability to maintain or increase our prices
(including our fuel surcharges in response to rising fuel costs) or to maintain or grow our
market share;
our ability to manage our cost structure for capital expenditures and operating expenses,
and match it to shifting and future customer volume levels;
our ability to effectively operate, integrate, leverage and grow acquired businesses, and
to continue to support the value we allocate to these acquired businesses, including their
goodwill;
any impacts on our businesses resulting from new domestic or international government laws
and regulation, including regulatory actions affecting global aviation rights, increased air
cargo and other security requirements, and tax, accounting, trade (such as protectionist
measures enacted in response to the current weak economic conditions), labor (such as
card-check legislation or changes to the Railway Labor Act affecting FedEx Express employees),
environmental (such as climate change legislation) or postal rules;
changes in foreign currency exchange rates, especially in the euro, Chinese yuan, Canadian
dollar, British pound and Japanese yen, which can affect our sales levels and foreign currency
sales prices;
the impact of costs related to (i) challenges to the status of FedEx Grounds
owner-operators as independent contractors, rather than employees, and (ii) any related
changes to our relationship with these owner-operators;
any liability resulting from and the costs of defending against class-action litigation,
such as wage-and-hour and discrimination and retaliation claims, patent litigation, and any
other legal proceedings;
Table of Contents
our ability to maintain good relationships with our employees and prevent attempts by labor
organizations to organize groups of our employees, which could significantly increase our
operating costs and reduce our operational flexibility;
increasing costs, the volatility of costs and legal mandates for employee benefits,
especially pension and healthcare benefits;
significant changes in the volumes of shipments transported through our networks, customer
demand for our various services or the prices we obtain for our services;
market acceptance of our new service and growth initiatives;
the impact of technology developments on our operations and on demand for our services;
adverse weather conditions or natural disasters, such as earthquakes and hurricanes, which
can disrupt electrical service, damage our property, disrupt our operations, increase fuel
costs and adversely affect shipment levels;
widespread outbreak of an illness or any other communicable disease, or any other public
health crisis;
availability of financing on terms acceptable to us and our ability to maintain our current
credit ratings, especially given the capital intensity of our operations and the current
volatility of credit markets;
credit losses from our customers inability or unwillingness to pay for previously provided
services as a result of, among other things, weak economic conditions and tight credit
markets; and
other risks and uncertainties you can find in our press releases and SEC filings, including
the risk factors identified under the heading Risk Factors in Managements Discussion and
Analysis of Results of Operations and Financial Condition in our Annual Report, as updated by
our quarterly reports on Form 10-Q.
Table of Contents
Table of Contents
- 52 -
- 53 -
Shorten the term of the executive officers employment agreement established upon a
change of control from three years to two years;
Provide that during the post-change-of-control employment period the executive officer
will be guaranteed the same annual incentive compensation opportunities, but will no longer
be guaranteed annual incentive compensation payout amounts;
Reduce the amount of a lump sum cash payment made to the executive officer in the event
of a qualifying termination from (a) the sum of (i) three times annual base salary
plus
three
times target annual incentive compensation
plus
three times target long-term
incentive compensation
and
(ii) prorated target annual bonus and prorated target
payments under all long-term incentive plans in effect
and
(iii) the excess of the actuarial
present value of pension benefits as of the date of termination assuming an additional 36 months
of age and service over the actuarial present value of what was actually earned as of the date of
termination to (b) two times annual base salary
plus
two times target
annual incentive compensation;
Provide that upon a qualifying termination the executive officer is entitled to 18
months of continued coverage of medical, dental and vision benefits, rather than the
previous lump sum cash payment equal to 36 months of full benefits coverage; and
Eliminate FedExs agreement to pay the excise taxes incurred by the executive officer
for any payments, distributions or other benefits received or deemed received by the
officer from FedEx.
Exhibit
Number
Description of Exhibit
First Amendment dated December 29, 2009 (but effective as of September 1, 2008) to the
Composite Lease Agreement dated May 21, 2007 (but effective as of January 1, 2007) between the
Memphis-Shelby County Airport Authority and Federal Express Corporation.
First Amendment dated December 29, 2009 (but effective as of September 1, 2008) to the
Special Facility Ground Lease Agreement dated as of July 1, 1993 between the Memphis-Shelby
County Airport Authority and Federal Express Corporation.
Supplemental Agreement No. 5 dated as of January 11, 2010 to the Boeing 777 Freighter
Purchase Agreement dated as of November 7, 2006 between The Boeing Company and Federal Express
Corporation. Confidential treatment has been requested for confidential commercial and
financial information, pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended.
Amendment dated December 8, 2009 to the Transportation Agreement dated July 31, 2006 between
the United States Postal Service and Federal Express Corporation. Confidential treatment has
been requested for confidential commercial and financial information, pursuant to Rule 24b-2
under the Securities Exchange Act of 1934, as amended.
Form of revised Management Retention Agreement, dated March 18, 2010, entered into between FedEx
Corporation and each of Frederick W. Smith, David J. Bronczek, Robert B. Carter, T. Michael
Glenn, Alan B. Graf, Jr., William J. Logue, David F. Rebholz and Christine P. Richards.
Black-lined version of form of revised Management Retention Agreement, dated March 18, 2010,
entered into between FedEx Corporation and each of Frederick W. Smith, David J. Bronczek,
Robert B. Carter, T. Michael Glenn, Alan B. Graf, Jr., William J. Logue, David F. Rebholz and
Christine P. Richards, marked to show revisions.
Computation of Ratio of Earnings to Fixed Charges.
Letter re: Unaudited Interim Financial Statements.
Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under
the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
Table of Contents
Exhibit
Number
Description of Exhibit
Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under
the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Interactive Data Files.
Table of Contents
- 54 -
FEDEX CORPORATION
Date: March 19, 2010
/s/ JOHN L. MERINO
JOHN L. MERINO
CORPORATE VICE PRESIDENT
PRINCIPAL ACCOUNTING OFFICER
Table of Contents
E-1
Exhibit
Number
Description of Exhibit
First Amendment dated December 29, 2009 (but effective as of September 1, 2008) to the
Composite Lease Agreement dated May 21, 2007 (but effective as of January 1, 2007) between the
Memphis-Shelby County Airport Authority and Federal Express Corporation.
First Amendment dated December 29, 2009 (but effective as of September 1, 2008) to the
Special Facility Ground Lease Agreement dated as of July 1, 1993 between the Memphis-Shelby
County Airport Authority and Federal Express Corporation.
Supplemental Agreement No. 5 dated as of January 11, 2010 to the Boeing 777 Freighter
Purchase Agreement dated as of November 7, 2006 between The Boeing Company and Federal Express
Corporation. Confidential treatment has been requested for confidential commercial and
financial information, pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended.
Amendment dated December 8, 2009 to the Transportation Agreement dated July 31, 2006 between
the United States Postal Service and Federal Express Corporation. Confidential treatment has
been requested for confidential commercial and financial information, pursuant to Rule 24b-2
under the Securities Exchange Act of 1934, as amended.
Form of revised Management
Retention Agreement, dated March 18, 2010, entered into between FedEx
Corporation and each of Frederick W. Smith, David J. Bronczek, Robert B. Carter, T. Michael
Glenn, Alan B. Graf, Jr., William J. Logue, David F. Rebholz and Christine P. Richards.
Black-lined version of form of
revised Management Retention Agreement, dated March 18, 2010,
entered into between FedEx Corporation and each of Frederick W. Smith, David J. Bronczek,
Robert B. Carter, T. Michael Glenn, Alan B. Graf, Jr., William J. Logue, David F. Rebholz and
Christine P. Richards, marked to show revisions.
Computation of Ratio of Earnings to Fixed Charges.
Letter re: Unaudited Interim Financial Statements.
Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under
the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under
the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Interactive Data Files.
2
3
A-380 Ramp | Rate Per Sq. Ft. | Monthly Rent | Annual Rent | |||||||||
|
||||||||||||
1,897,879 Sq. Ft.
|
$ | 0.1220 | $ | 19,295.10 | $ | 231,541.24 |
A-380 GSE Ramp | Rate Per Sq. Ft. | Monthly Rent | Annual Rent | |||||||||
|
||||||||||||
319,113 Sq. Ft.
|
$ | 0.1906 | $ | 5,068.58 | $ | 60,822.94 |
4
|
||||||
WITNESS: |
MEMPHIS-SHELBY COUNTY AIRPORT
AUTHORITY |
|||||
|
||||||
/s/ ANNETTE LECROIX | BY: | /s/ SCOTT A. BROCKMAN | ||||
|
||||||
TITLE: Paralegal
|
TITLE: | EVP/COO | ||||
|
||||||
DATE: December 29, 2009 | DATE: December 29, 2009 | |||||
|
||||||
Approved as to Form and Legality:
|
||||||
|
||||||
/s/ SARA L. HALL
|
||||||
|
||||||
WITNESS: |
FEDERAL EXPRESS CORPORATION
A Delaware Corporation |
|||||
|
||||||
/s/ MICHELLE WHITAKER | BY: | /s/ WILEY JOHNSON, JR. | ||||
|
||||||
TITLE: Project Coordinator
|
TITLE: | Managing Director, Real Estate and Airport Development | ||||
|
||||||
DATE: October 26, 2009 | DATE: October 26, 2009 |
5
6
7
8
9
FEDEX | CURRENT | CURRENT | PROJECTED RATES | |||||||||||||||||||||||||||||||||||||||||||||||
PARCEL | LEASE | EFFECTIVE | SQUARE | CURRENT | MONTHLY | ANNUAL | EFFECTIVE JULY 2008 | 7/1/2008 | 7/1/2013 (10) | 7/1/2018 (10) | ||||||||||||||||||||||||||||||||||||||||
NUMBER | NUMBER | CURRENT SUPPLEMENTAL | USE OR LOCATION | DATE | FEET | RATE | BILLING | BILLING | RATES | MONTHLY | ANNUAL | ESCALATION | ESCALATION | ESCALATION | ||||||||||||||||||||||||||||||||||||
1
|
N/A | TAXIWAY N | 1/1/2009 | (1) | 100,035 | N/A | $ | 0.00 | $ | 0.00 | N/A | N/A | N/A | N/A | CPI OR 13% | CPI OR 13% | ||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
2
|
98-0824 | SUPPLEMENTAL 26 | AMR FACILITIES/LANDLOCKED PARCELS | 1/1/2007 | 1,082,446 | Varies (3) | $ | 30,869.35 | $ | 370,432.20 | $ | 0.3935 | $ | 35,497.91 | $ | 425,974.97 | 15 | %(3) | CPI OR 13% | CPI OR 13% | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
3
|
SUPPLEMENTALS | WEST RAMP | ||||||||||||||||||||||||||||||||||||||||||||||||
|
80-0204 | 18, 19, 20, 21, 22 & 23 | UNIMPROVED GROUND | 1/1/2007 | 3,111,647 | $ | 0.1525 | $ | 39,543.85 | $ | 474,526.17 | $ | 0.1906 | $ | 49,423.33 | $ | 593,079.92 | N/A | CPI OR 13% | CPI OR 13% | ||||||||||||||||||||||||||||||
|
80-0204 | 22, 24 & 25 | UNIMPROVED GROUND | 1/1/2007 | 914,283 | $ | 0.1525 | $ | 11,619.01 | $ | 139,428.16 | $ | 0.1906 | $ | 14,521.86 | $ | 174,262.34 | N/A | CPI OR 13% | CPI OR 13% | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
4
|
N/A | TAXIWAY C | 1/1/2009 | (2) | 731,098 | N/A | $ | 0.00 | $ | 0.00 | N/A | N/A | N/A | N/A | CPI OR 13% | CPI OR 13% | ||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
5
|
80-0204 | SUPPLEMENTAL 13 | UNIMPROVED APRON/GRACELAND RAMP | 1/1/2007 | 515,496 | $ | 0.1525 | $ | 6,551.10 | $ | 78,613.14 | $ | 0.1906 | $ | 8,187.79 | $ | 78,613.14 | N/A | CPI OR 13% | CPI OR 13% | ||||||||||||||||||||||||||||||
|
80-0204 | SUPPLEMENTAL 17 | UNIMPROVED APRON/SIERRA RAMP | 1/1/2007 | $ | 0.1525 | N/A | CPI OR 13% | CPI OR 13% | |||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
6
|
92-0833 | AGREEMENT #92-0833 | IRS/AOD | 1/1/2007 | 2,248,286 | $ | 0.6650 | $ | 125,000.00 | $ | 1,500,000.00 | $ | 0.6672 | $ | 125,000.00 | $ | 1,500,000.00 | N/A | 15 | % | CPI OR 13% | |||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
7
|
90-0242 | SOUTHWIDE #90-0242 | GRAEBER ASSIGNMENT | 1/1/2007 | 427,030 | $ | 0.1029 | $ | 2,506.15 | $ | 30,073.80 | $ | 0.1029 | $ | 2,506.15 | $ | 43,941.39 | 25 | %(5) | CPI OR 13% | CPI OR 13% | |||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
8
|
80-0223 | SOUTHWIDE ASGMT. #80-0223 | EQUITABLE LIFE | 1/1/2007 | 451,370 | $ | 0.0644 | $ | 2,340.16 | $ | 28,081.92 | $ | 0.0644 | $ | 2,340.16 | $ | 29,068.23 | 25 | %(5) | CPI OR 13% | CPI OR 13% | |||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
9
|
80-0204 | SUPPLEMENTAL 15 (INTERNATIONAL PARK) | FEDEX PARKING - TCHULAHOMA | 1/1/2007 | 833,458 | $ | 0.2673 | $ | 18,565.28 | $ | 222,783.36 | $ | 0.2673 | $ | 18,565.28 | $ | 222,783.32 | N/A | CPI OR 13% | CPI OR 13% | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
10
|
80-0204 | SUPPLEMENTAL 16 (INTERNATIONAL PARK) | FEDEX CONSTRUCTION STORAGE AREA | 1/1/2007 | 140,617 | $ | 0.2673 | $ | 3,132.24 | $ | 37,586.92 | $ | 0.2673 | $ | 3,132.24 | $ | 37,586.92 | N/A | CPI OR 13% | CPI OR 13% | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
11
|
80-0204 | SUPPLEMENTAL 13 | UNIMPROVED GROUND/GSE STORAGE | 1/1/2007 | 187,217 | $ | 0.1525 | $ | 2,379.22 | $ | 28,550.59 | $ | 0.1906 | $ | 2,973.63 | $ | 35,683.56 | N/A | CPI OR 13% | CPI OR 13% | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
12
|
80-0204 | SUPPLEMENTAL 27 | A-380 GSE STORAGE | DBO 12/01/07 (4) | 187,618 | N/A | $ | 0.00 | $ | 0.00 | $ | 0.1525 | $ | 2,384.31 | $ | 28,611.75 | N/A | CPI OR 13% | CPI OR 13% | |||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
13
|
80-0204 | SUPPLEMENTAL 23 | A-380 RAMP | 1/1/2007 | 1,897,879 | $ | 0.1220 | $ | 19,295.10 | $ | 231,541.24 | $ | 0.1220 | $ | 19,295.10 | $ | 231,541.24 | N/A | CPI OR 13% | CPI OR 13% | ||||||||||||||||||||||||||||||
|
SUPPLEMENTAL 25 | A-380 GSE RAMP | 1/1/2007 | 319,113 | $ | 0.1525 | $ | 4,055.39 | $ | 48,664.73 | $ | 0.1906 | $ | 5,068.58 | $ | 60,822.94 | N/A | CPI OR 13% | CPI OR 13% | |||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
14
|
80-0204 | SUPPLEMENTAL 14 | UNIMPROVED APRON/DE-ICING EQUIPMENT STORAGE | 1/1/2007 | 428,616 | $ | 0.1525 | $ | 5,447.00 | $ | 65,363.94 | $ | 0.1906 | $ | 6,807.85 | $ | 81,694.21 | N/A | CPI OR 13% | CPI OR 13% | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
15
|
**N/A | SPRANKLE ROAD | 1/1/2007 | 200,695 | $ | 0.0000 | $ | 0.00 | $ | 0.00 | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
16
|
**N/A | REPUBLIC ROAD | 1/1/2007 | 113,179 | $ | 0.0000 | $ | 0.00 | $ | 0.00 | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
17
|
SUPPLEMENTALS | |||||||||||||||||||||||||||||||||||||||||||||||||
|
80-0204 | 1 Parcel 1, 2, 3, 4, 6 & 9 (UNIMP GROUND) | 1/1/2007 | 1,662,877 | $ | 0.1525 | $ | 21,132.40 | $ | 253,588.74 | $ | 0.1906 | $ | 26,412.03 | $ | 316,944.36 | N/A | CPI OR 13% | CPI OR 13% | |||||||||||||||||||||||||||||||
|
80-0204 | 1 Parcel 1, 2, 7, 9 (IMP APRON) | 1/1/2007 | 1,908,290 | $ | 0.1906 | $ | 30,310.01 | $ | 363,720.07 | $ | 0.2383 | $ | 37,895.46 | $ | 454,745.51 | N/A | CPI OR 13% | CPI OR 13% | |||||||||||||||||||||||||||||||
|
80-0204 | Parcel 5 (INTERNATIONAL PARK) | 1/1/2007 | 24,000 | $ | 0.2673 | $ | 534.60 | $ | 6,415.20 | $ | 0.3341 | $ | 668.25 | $ | 8,019.00 | 25 | %(5) | CPI OR 13% | CPI OR 13% | ||||||||||||||||||||||||||||||
|
80-0204 | 1 Parcel 8 (INTERNATIONAL PARK) | FUEL TANKS | 1/1/2007 | 247,254 | $ | 0.2673 | $ | 5,507.58 | $ | 66,090.99 | $ | 0.3341 | $ | 6,884.48 | $ | 82,613.74 | 25 | %(5) | CPI OR 13% | CPI OR 13% | |||||||||||||||||||||||||||||
|
80-0204 | 1 & 8 Parcel 12 (INETRNATIONAL PARK) | ARTC TRAINING BUILDING | 1/1/2007 | 117,915 | $ | 0.2673 | $ | 2,626.56 | $ | 31,518.68 | $ | 0.3341 | $ | 3,283.20 | $ | 39,398.35 | 25 | %(5) | CPI OR 13% | CPI OR 13% | |||||||||||||||||||||||||||||
|
80-0204 | 1 & 8 Parcel 11 (INTERNATIONAL PARK) | GAS STATION | 1/1/2007 | 45,359 | $ | 0.2673 | $ | 1,010.37 | $ | 12,124.46 | $ | 0.3341 | $ | 1,262.96 | $ | 15,155.58 | 25 | %(5) | CPI OR 13% | CPI OR 13% | |||||||||||||||||||||||||||||
|
80-0204 | 8 Parcel 9 (INTERNATIONAL PARK) | SOUTH RAMP, COURTYARD, SOUTHGATES | 1/1/2007 | 1,586,172 | $ | 0.2673 | $ | 35,331.98 | $ | 423,983.78 | $ | 0.3341 | $ | 44,164.98 | $ | 529,979.72 | 25 | %(5) | CPI OR 13% | CPI OR 13% | |||||||||||||||||||||||||||||
|
80-0204 | Parcel 10 (INTERNATIONAL PARK) | SOUTHEASTERN RAMP, NORTH SECONDARY, | 1/1/2007 | 70,200 | $ | 0.2673 | $ | 1,563.71 | $ | 18,764.46 | $ | 0.3341 | $ | 1,954.63 | $ | 23,455.58 | 25 | %(5) | CPI OR 13% | CPI OR 13% | |||||||||||||||||||||||||||||
|
80-0204 | Parcel 17 (INTERNATIONAL PARK) | NORTH INPUT, PRIMARY SORT, | 1/1/2007 | 4,333,659 | (9) | $ | 0.2673 | $ | 96,532.25 | $ | 1,158,387.00 | $ | 0.3341 | $ | 120,665.32 | $ | 1,447,983.84 | 25 | %(5) | CPI OR 13% | CPI OR 13% | ||||||||||||||||||||||||||||
|
SMALL PACKAGE SORT SYSTEM, | |||||||||||||||||||||||||||||||||||||||||||||||||
|
INTERNATIONAL INPUT, HEAVY WEIGHT, EAST RAMP | |||||||||||||||||||||||||||||||||||||||||||||||||
|
80-0204 | TAB-LINE MAINTENANCE | 1/1/2007 | 556,334 | $ | 0.2673 | $ | 12,392.34 | $ | 148,708.08 | $ | 0.3341 | $ | 15,489.27 | $ | 185,871.19 | 25 | %(5) | CPI OR 13% | CPI OR 13% | ||||||||||||||||||||||||||||||
|
80-0204 | 10 Parcel 27A (IMP APRON) | PARCEL 27A | 1/1/2007 | 487,512 | $ | 0.1906 | $ | 7,743.32 | $ | 92,919.79 | $ | 0.2383 | $ | 9,681.18 | $ | 116,174.11 | N/A | CPI OR 13% | CPI OR 13% | ||||||||||||||||||||||||||||||
|
80-0204 | 11 Parcel A & B West (UNIMP GROUND) | NORTH RAMP | 1/1/2007 | 527,676 | $ | 0.1525 | $ | 6,705.88 | $ | 80,470.59 | $ | 0.1906 | $ | 8,381.25 | $ | 100,575.05 | N/A | CPI OR 13% | CPI OR 13% | ||||||||||||||||||||||||||||||
|
80-0204 | 5 Parcel 16 (INTERNATIONAL PARK) | 1/1/2007 | 796,312 | $ | 0.2673 | $ | 17,737.85 | $ | 212,854.20 | $ | 0.3341 | $ | 22,172.31 | $ | 266,067.75 | 25 | %(5) | CPI OR 13% | CPI OR 13% | ||||||||||||||||||||||||||||||
|
80-0204 | 23 | GRAEBER ASSIGNMENT/TRUCKING OPERATION | 1/1/2007 | 261,460 | $ | 0.1029 | $ | 2,242.02 | $ | 26,904.25 | $ | 0.1286 | $ | 2,802.53 | $ | 33,630.32 | 25 | %(5) | CPI OR 13% | CPI OR 13% | |||||||||||||||||||||||||||||
|
80-0204 | SUPPLEMENTAL 9 (INTERNATIONAL PARK) | PARKING AREA | 1/1/2007 | 18,933 | $ | 0.2673 | $ | 421.73 | $ | 5,060.79 | $ | 0.3341 | $ | 527.17 | $ | 6,325.99 | 25 | %(5) | CPI OR 13% | CPI OR 13% |
FEDEX | CURRENT | CURRENT | PROJECTED RATES | |||||||||||||||||||||||||||||||||||||||||||||||
PARCEL | LEASE | EFFECTIVE | SQUARE | CURRENT | MONTHLY | ANNUAL | EFFECTIVE JULY 2008 | 7/1/2008 | 7/1/2013 (10) | 7/1/2018 (10) | ||||||||||||||||||||||||||||||||||||||||
NUMBER | NUMBER | CURRENT SUPPLEMENTAL | USE OR LOCATION | DATE | FEET | RATE | BILLING | BILLING | RATES | MONTHLY | ANNUAL | ESCALATION | ESCALATION | ESCALATION | ||||||||||||||||||||||||||||||||||||
18
|
80-0204 | SUPPLEMENTAL 8 (INTERNATIONAL PARK) | DC-10 HANGAR (LAND) | 1/1/2007 | 552,730 | $ | 0.2673 | $ | 12,312.06 | $ | 147,744.73 | $ | 0.2673 | $ | 12,312.06 | $ | 147,744.73 | N/A | CPI OR 13% | CPI OR 13% | ||||||||||||||||||||||||||||||
?
|
THE BUILDING HAVING AN AREA OF 72,378 SQ FT & OTHER IMPROVEMENTS | DC-10 HANGAR (BUILDING) | 9/1/2012 | (6) | N/A | $ | 0.00 | $ | 0.00 | N/A | N/A | N/A | N/A | CPI OR 13% | CPI OR 13% | |||||||||||||||||||||||||||||||||||
|
CONSTRUCTED ON PARCEL 18 | |||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
19
|
80-0204 | SUPPLEMENTAL 8 (INTERNATIONAL PARK) | ENGINE SHOP | 1/1/2007 | 418,016 | $ | 0.2673 | $ | 9,311.31 | $ | 111,735.68 | $ | 0.2673 | $ | 9,311.31 | $ | 111,735.68 | N/A | CPI OR 13% | CPI OR 13% | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
20
|
80-0204 | SUPPLEMENTAL 27 | WEST SIDE OF TANG | DBO/3/1/08 (7) | 108,051 | N/A | $ | 0.00 | $ | 0.00 | $ | 0.1525 | $ | 1,373.15 | $ | 16,477.78 | N/A | CPI OR 13% | CPI OR 13% | |||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
21
|
80-0204 | SUPPLEMENTAL 7 | DEMOCRAT VEHICLE PARKING | 1/1/2007 | 1,812,363 | $ | 0.1525 | $ | 23,032.10 | $ | 276,385.20 | $ | 0.19060 | $ | 28,786.37 | $ | 345,436.39 | N/A | CPI OR 13% | CPI OR 13% | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
22
|
80-0204 | SUPPLEMENTAL 9 | DEMOCRAT VEHICLE PARKING | 1/1/2007 | 491,127 | $ | 0.1525 | $ | 6,241.41 | $ | 74,896.87 | $ | 0.19060 | $ | 7,800.73 | $ | 93,608.81 | N/A | CPI OR 13% | CPI OR 13% | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
23
|
N/A | TAXIWAY SIERRA | 1/1/2009 | (2) | 248,711 | N/A | $ | 0.00 | $ | 0.00 | N/A | N/A | N/A | N/A | CPI OR 13% | CPI OR 13% | ||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
24
|
SORT FACILITY | 09/01/2009 | (9) | 292,000 | N/A | $ | 0.00 | $ | 0.00 | N/A | N/A | N/A | N/A | CPI OR 13% | CPI OR 13% | |||||||||||||||||||||||||||||||||||
|
30,459,161 | $ | 563,993.31 | $ | 6,767,919.73 | $ | 657,532.82 | $ | 7,885,607.36 |
RATE & RATE ESCALATION | CURRENT RATES | 7/1/2013 | ||||||
IMPROVED GROUND
|
$ | 0.2383 | CPI-U | |||||
|
||||||||
UNIMPROVED GROUND
|
$ | 0.1906 | CPI-U |
2
Total Land | Rate Per Sq. Ft. | Monthly Rent | Annual Rent | |||||||||
|
||||||||||||
2,450,843 sq. ft.
|
$ | 0.1541 | $ | 31,472.91 | $ | 377,674.91 |
3
WITNESS: | MEMPHIS-SHELBY COUNTY AIRPORT AUTHORITY | |||||||||
|
||||||||||
/s/ ANNETTE LECROIX | BY: | /s/ SCOTT A. BROCKMAN | ||||||||
|
||||||||||
TITLE:
|
Paralegal | TITLE: | EVP/COO | |||||||
|
||||||||||
DATE:
|
December 29, 2009 | DATE: | December 29, 2009 | |||||||
|
||||||||||
Approved as to Form and Legality: | ||||||||||
|
||||||||||
/s/ SARA L. HALL | ||||||||||
Sara L. Hall, Vice President & General Counsel | ||||||||||
|
||||||||||
WITNESS: |
FEDERAL EXPRESS CORPORATION
A Delaware Corporation |
|||||||||
|
||||||||||
/s/ MICHELLE WHITAKER | BY: | /s/ WILEY JOHNSON, JR. | ||||||||
TITLE:
|
Project Coordinator | TITLE: | Managing Director, Real Estate and Airport Development | |||||||
|
||||||||||
DATE:
|
October 26, 2009 | DATE: | October 26, 2009 |
4
5
6
7
Serial | Current Delivery | Revised Delivery | ||
Number | Month per SA # 4 | Month | ||
[ * ] | [ * ] | [ * ] | ||
[ * ] | [ * ] | [ * ] |
* | Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended. |
1. | Remove and replace, in its entirety, the Table of Contents with the revised Table of Contents attached hereto to reflect the changes made by this Supplemental Agreement No. 5. | |
2. | Remove and replace, in its entirety, Table 1 to the Purchase Agreement with the revised Table 1 attached hereto to reflect changes relating to the Rescheduled Aircraft. | |
3. | Boeing and Customer agree that all advance payments for the Rescheduled Aircraft will [ * ]. | |
4. | Boeing and Customer further agree that the final delivery payment for the Rescheduled Aircraft will [ * ]. |
THE BOEING COMPANY | FEDERAL EXPRESS CORPORATION | |||||
|
||||||
By:
|
/s/ Richard R. Ochs | By: | /s/ Phillip C. Blum | |||
|
||||||
|
||||||
|
Its: Attorney-In-Fact | Its: Vice President Aircraft Acquisitions/SAO |
* | Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended. |
S5 - 2
SA | ||||||
NUMBER | ||||||
LETTER
AGREEMENT
|
||||||
|
||||||
3157-01
|
777 Spare Parts Initial Provisioning | |||||
|
||||||
3157-02
|
Demonstration Flight Waiver | |||||
|
||||||
6-1162-RCN-1785
|
[ * ] | |||||
|
||||||
6-1162-RCN-1789
|
Option Aircraft Attachment to Letter 6-1162-RCN-1789 | Exercised in SA # 4 | ||||
|
||||||
6-1162-RCN-1790
|
Special Matters | |||||
|
||||||
6-1162-RCN-1791
|
Performance Guarantees | 4 | ||||
|
||||||
6-1162-RCN-1792
|
Liquidated Damages Non-Excusable
Delay |
|||||
|
||||||
6-1162-RCN-1793
|
Open Configuration Matters | |||||
|
||||||
6-1162-RCN-1795
|
AGTA Amended Articles | |||||
|
||||||
6-1162-RCN-1796
|
777 First-Look Inspection Program | |||||
|
||||||
6-1162-RCN-1797
|
Licensing and Customer Supplemental Type Certificates | |||||
|
||||||
6-1162-RCN-1798
|
777 Boeing Converted Freighter | Deleted in SA # 4 | ||||
|
||||||
6-1162-RCN-1798 R1
|
777 Boeing Converted Freighter | 4 | ||||
|
||||||
6-1162-RCN-1799
|
[ * ] | |||||
|
||||||
6-1162-RRO-1062
|
Option Aircraft | 4 | ||||
|
||||||
6-1162-RRO-1065
|
Performance Guarantees for Block B Aircraft | 4 | ||||
|
||||||
6-1162-RRO-1066
|
Special Matters for Block B Aircraft | 4 | ||||
|
||||||
6-1162-RRO-1067
|
Special Matters for Option Aircraft detailed in
Letter Agreement 6-1162-RRO-1062 |
4 | ||||
|
||||||
6-1162-RRO-1068
|
Special Provision Block B Aircraft | 4 |
S5 - 2
SUPPLEMENTAL AGREEMENTS | DATED AS OF: | |
|
||
Supplemental Agreement No. 1
|
May 12, 2008 | |
|
||
Supplemental Agreement No. 2
|
July 14, 2008 | |
|
||
Supplemental Agreement No. 3
|
December 15, 2008 | |
|
||
Supplemental Agreement No. 4
|
January 9, 2009 | |
|
||
Supplemental Agreement No. 5
|
January 11, 2010 |
* | Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended. |
S5 - 3
Airframe Model/MTOW:
|
777-Freighter | 766000 pounds | Detail Specification: D019W007FED7F-1, Rev NEW | |||||||||||||||||
Engine Model/Thrust:
|
GE90-110B1L | 110100 pounds | Airframe Price Base Year/Escalation Formula: | Jul-06 | ECI-MFG/CPI | |||||||||||||||
Airframe Price:
|
[ * ] | Engine Price Base Year/Escalation Formula: | N/A | N/A | ||||||||||||||||
Optional Features:
|
[ * ] | |||||||||||||||||||
|
||||||||||||||||||||
Sub-Total of Airframe and Features:
|
[ * ] | Airframe Escalation Data: | ||||||||||||||||||
Engine Price (Per Aircraft):
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$ | 0 | Base Year Index (ECI): | 180.3 | ||||||||||||||||
Aircraft Basic Price (Excluding BFE/SPE):
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[ * ] | Base Year Index (CPI): | 195.4 | |||||||||||||||||
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Buyer Furnished Equipment (BFE) Estimate: | [ * ] | |||||||||||||||||||
Seller Purchased Equipment (SPE) Estimate: | $ | 0 | ||||||||||||||||||
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Refundable Deposit/Aircraft at Proposal Accept: | [ * ] |
Note: | Boeing and Customer acknowledge that letter 6-1162-RRO-1069 Delivery Notice and Excusable Delay for Aircraft with Delivery Dates of [ * ] has been sent to Customer. | |
Per SA # 5, [ * ]. Per SA # 5, [ * ]. | ||
* | Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended. |
FED
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Supplemental Agreement No. 5 | |||
50269-1F.TXT
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Boeing Proprietary | Page 1 |
THE UNITED STATES POSTAL SERVICE
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By: | /s/ SUSAN E. PARTRIDGE | |||
Title: Purchasing & SM Specialist | ||||
FEDERAL EXPRESS CORPORATION
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By: | /s/ PAUL J. HERRON | |||
Title: VP, Postal Transportation Management | ||||
Total AMJs for the Period
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[ * ] | |
Total LD3s for the Period
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[ * ] | |
Optional Days AMJ
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[ * ] | |
Optional Days LD3s
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[ * ] |
ULD Type
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AMJ | LD3 | ||||
Amount of containers
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[ * ] | [ * ] | ||||
Charge per ULD
|
[ * ] | [ * ] | ||||
Total Charges Per ULD type
|
[ * ] | [ * ] | ||||
Total Charges
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[ * ] |
1. |
747 Aircraft are used for the charter operations. Each aircraft carries [ * ] and [ * ]
|
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2. |
Each location requires 2 sets of ULDs, one set for the ULDs in transit and another set at the origin to build the next movement.
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3. |
Two sets of ULDs per aircraft, [ * ] and [ * ], are the amount of containers charged per day.
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4. |
The amount of ULDs charged is based on the [ * ], [ * ], and [ * ] as outlined above
|
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5. |
If optional days are exercised the same rates will apply
|
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6. |
The amounts charged per container type are [ * ] and [ * ]
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* |
Blank spaces contained confidential information which has been filed separately with the
Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities Exchange Act of
1934, as amended.
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If to the Corporation: | FedEx Corporation | |||
942 South Shady Grove Road | ||||
Memphis, Tennessee 38120 | ||||
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Attn: | Christine P. Richards | ||
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Executive Vice President, | |||
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General Counsel and Secretary |
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FedEx Corporation | ||||||||
By: | ||||||||
Name: | Christine P. Richards | |||||||
Title: | Executive Vice President, General Counsel and Secretary | |||||||
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If to the Corporation : | FedEx Corporation | |||
942 South Shady Grove Road | ||||
Memphis, Tennessee 38120 | ||||
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Attn: | Christine P. Richards | ||
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Executive Vice President, | |||
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General Counsel and Secretary |
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FedEx Corporation | ||||||||
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||||||||
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By: | |||||||
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Name: | Christine P. Richards | ||||||
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Title: | Executive Vice President, | ||||||
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General Counsel and Secretary | |||||||
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Nine Months Ended | ||||||||||||||||||||||||||||
February 28, | Year Ended May 31, | |||||||||||||||||||||||||||
2010 | 2009 | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||||
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Earnings:
|
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Income before income taxes
|
$ | 1,222 | $ | 1,551 | $ | 677 | $ | 2,016 | $ | 3,215 | $ | 2,899 | $ | 2,313 | ||||||||||||||
Add back:
|
||||||||||||||||||||||||||||
Interest expense, net of capitalized
interest
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58 | 61 | 85 | 98 | 136 | 142 | 160 | |||||||||||||||||||||
Amortization of debt issuance costs
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10 | 4 | 5 | 5 | 6 | 5 | 6 | |||||||||||||||||||||
Portion of rent expense representative
of interest factor
|
578 | 601 | 795 | 784 | 766 | 842 | 800 | |||||||||||||||||||||
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Earnings as adjusted
|
$ | 1,868 | $ | 2,217 | $ | 1,562 | $ | 2,903 | $ | 4,123 | $ | 3,888 | $ | 3,279 | ||||||||||||||
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Fixed Charges:
|
||||||||||||||||||||||||||||
Interest expense, net of capitalized
interest
|
$ | 58 | $ | 61 | $ | 85 | $ | 98 | $ | 136 | $ | 142 | $ | 160 | ||||||||||||||
Capitalized interest
|
62 | 49 | 71 | 50 | 34 | 33 | 22 | |||||||||||||||||||||
Amortization of debt issuance costs
|
10 | 4 | 5 | 5 | 6 | 5 | 6 | |||||||||||||||||||||
Portion of rent expense representative
of interest factor
|
578 | 601 | 795 | 784 | 766 | 842 | 800 | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
|
$ | 708 | $ | 715 | $ | 956 | $ | 937 | $ | 942 | $ | 1,022 | $ | 988 | ||||||||||||||
|
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|
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Ratio of Earnings to Fixed Charges
|
2.6 | 3.1 | 1.6 | 3.1 | 4.4 | 3.8 | 3.3 | |||||||||||||||||||||
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/s/ Ernst & Young LLP |
1. | I have reviewed this quarterly report on Form 10-Q of FedEx Corporation (the registrant); | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and | ||
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
/s/ Frederick W. Smith
|
||
Chairman, President and
|
||
Chief Executive Officer
|
1. | I have reviewed this quarterly report on Form 10-Q of FedEx Corporation (the registrant); | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and | ||
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
/s/ Alan B. Graf, Jr.
|
||
Executive Vice President and
|
||
Chief Financial Officer
|
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | ||
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of FedEx. |
/s/ Frederick W. Smith
|
||
Chairman, President and
|
||
Chief Executive Officer
|
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | ||
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of FedEx. |
/s/ Alan B. Graf, Jr.
|
||
Executive Vice President and
|
||
Chief Financial Officer
|