v3.26.3
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 4 Months Ended 9 Months Ended
Sep. 30, 2026
Sep. 30, 2026
Accounting Policies [Abstract]    
Summary of Assets and Liabilities of Supply Chain that were Classified as Held for Sale The table below summarizes the assets and liabilities of Supply Chain that were classified as held for sale and where amounts are included within the accompanying unaudited condensed consolidated balance sheets (in millions):
September 30,
2026
Current assets (Prepaid expenses and other)$375 
Noncurrent assets (Goodwill and other assets)292
Current liabilities (Accrued and other liabilities)222
Noncurrent liabilities (Other liabilities)181
The following table presents the major classes of income and expense comprising income from discontinued operations (in millions):

Three Months EndedFour Months Ended
September 30, 2025September 30, 2025
REVENUE$2,220 $2,954 
OPERATING EXPENSES:
Salaries and employee benefits1,022 1,349 
Purchased transportation198 263 
Rentals and landing fees75 99 
Fuel116 151 
Depreciation and amortization110 148 
Maintenance and repairs83 110 
Other, net243 307 
1,847 2,427 
OPERATING INCOME373 527 
OTHER (EXPENSE) INCOME1 3 
INCOME BEFORE INCOME TAXES374 530 
PROVISION FOR INCOME TAXES99 139 
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAXES$275 $391 
The following table presents the carrying amounts of the major classes of assets and liabilities of FedEx Freight included as part of discontinued operations (in millions):
May 31,
2026
ASSETS
CURRENT ASSETS
Cash and cash equivalents$251 
Receivables, less allowances1,154 
Prepaid expenses and other83 
Current assets of discontinued operations1,488 
PROPERTY AND EQUIPMENT, NET2,922 
OTHER LONG-TERM ASSETS
Operating lease right-of-use assets, net1,824 
Goodwill and other assets661 
Total other long-term assets2,485 
Non-current assets of discontinued operations$5,407 
LIABILITIES
CURRENT LIABILITIES
Accrued and other liabilities$504 
Accrued salaries and employee benefits388 
Accounts and notes payable106 
Current liabilities of discontinued operations998 
LONG-TERM DEBT, LESS CURRENT PORTION4,484 
OTHER LONG-TERM LIABILITIES
Deferred income taxes221 
Self-insurance accruals13 
Operating lease liabilities1,666 
Other liabilities4 
Total other long-term liabilities1,904 
Non-current liabilities of discontinued operations$6,388 
The following table presents the operating and investing cash flows attributable to discontinued operations (in millions):
Four Months Ended
September 30, 2025
Cash provided by operating activities of discontinued operations$691 
Cash used in investing activities of discontinued operations(49)
  
Schedule of Amounts Accrued Associated with Restructuring and Exit Costs The table below summarizes the changes to amounts accrued associated with restructuring and exit costs during the four-month periods ended September 30, 2026 and 2025 (in millions):
20262025
Restructuring and exit costs accrued, as of May 31$(290)$(221)
Expenses incurred
(200)(87)
Amounts paid220 192 
Restructuring and exit costs accrued, as of September 30$(270)$(116)
  
Schedule of Accrued and Other Liabilities Included in Current Liabilities
The following table presents the components of accrued and other liabilities included in current liabilities in the accompanying unaudited condensed consolidated balance sheets (in millions):
September 30, 2026May 31,
2026
Current portion of operating lease liabilities$2,511 $2,508 
Current portion of long-term debt2,051 1,633 
Other accrued liabilities5,089 5,436 
$9,651 $9,577 
  
Schedule of Derivative Instruments The following foreign currency derivatives used to hedge our net investments in foreign operations were outstanding as of September 30, 2026 and May 31, 2026 (notional amounts in millions):
September 30, 2026May 31, 2026
Derivatives designated as net investment hedgesNumber of InstrumentsNotional SoldNotional PurchasedNumber of InstrumentsNotional SoldNotional Purchased
Cross-currency swaps4€(949)$1,000 4€(949)$1,000 
  
Schedule of Fair Value of Derivatives
The following table presents the fair value of our cross-currency swaps, including their classification on the consolidated balance sheet, as of September 30, 2026 and May 31, 2026 (in millions):

Balance Sheet
Location		September 30, 2026May 31,
2026
Cross-currency swapsPrepaid expenses and other$13 $12 
Cross-currency swapsOther liabilities$94 $115 
  
Schedule of Property and Equipment   The following table provides a summary of property and equipment as of September 30, 2026 and May 31, 2026 (in millions):
September 30, 2026May 31,
2026
PROPERTY AND EQUIPMENT, AT COST85,578 $84,257
Less accumulated depreciation and amortization(45,892)(45,135)
PROPERTY AND EQUIPMENT, NET$39,686$39,122
Schedule of Information Shares Repurchased Program
The following table presents information regarding shares repurchased under the 2026 and 2024 programs for the periods presented:
Three Months EndedFour Months Ended
September 30, 2026September 30, 2025September 30, 2026September 30, 2025
2026 program
Shares repurchased
2.3 million—2.3 million—
Average price per share$329.75—$329.75—
Total amount repurchased$0.7 billion—$0.7 billion—
2024 program
Shares repurchased
0.7 million2.7 million4.0 million3.3 million
Average price per share$263.22$235.13$313.93$233.07
Total amount repurchased$0.2  billion$0.6  billion$1.3 billion$0.8 billion