FEDEX CORP (FDX) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that FEDEX CORP surfaced in its latest filing.

• The decline in U.S. imports of consumer goods started in late 2022.late 2022
• Inflation and elevated interest rates are expected to continue negatively affecting results for the remainder of calendar year 2026.2026
• Our services in Ukraine remain limited; services in Belarus remain suspended; we have exited operations in Russia; and services in the Middle East are impacted due to ongoing conflicts.
• As of May 31, 2026, we had no derivative financial instruments to reduce exposure to fuel price fluctuations.May 31, 2026
• Network 2.0 is a multi-year effort to improve efficiency in U.S. and Canada pickup, transport, and delivery; Tricolor is the global redesign of the intercontinental air network into three systems.
• In January 2026, operational transformation programs were initiated in certain international locations to modernize domestic operations.January 2026
• On February 12, 2026, we announced financial performance targets for calendar 2029.February 12, 2026
• On June 1, 2026, we completed the Spin-Off of FedEx Freight and entered into various agreements including separation and distribution, transition services, tax matters, employee matters, intellectual property cross-license, trademark license, stockholder and registration rights, and indemnification agreements.June 1, 2026
• We will divest our ownership interest in FedEx Freight within twenty-four months from the Spin-Off.
• Receipt of a private letter ruling from the IRS on the tax-free status of the Spin-Off and an opinion of counsel, and entry into a tax matters agreement with FedEx Freight.
• Noncash impairment charges recorded in 2026 and 2025 in connection with the decision to permanently retire certain aircraft and related engines from service.2026
• We, as a member of a consortium, have entered into a conditional agreement on a recommended all-cash public offer for all issued and outstanding shares of InPost S.A., subject to regulatory approvals; following completion, we will hold 37% and intend to enter into arm's length commercial agreements.
• We are defending joint-employer cases where it is alleged that we should be treated as an employer or joint employer of drivers employed by service providers.
• In 2010, the FAA proposed regulations changing flight and duty time rules; in 2011 final regulations exempted all-cargo carriers including Federal Express; in 2012 the FAA reaffirmed the exclusion and litigation in the U.S. Court of Appeals affirmed the decision; Congress periodically considers legislation to require compliance.
• We recognized a pre-tax, noncash MTM gain of $647 million in 2026 ($497 million, net of tax, or $2.08 per diluted share).2026
• Set goal of carbon neutrality for global operations by calendar 2040, with interim targets including electric vehicle purchases, aviation fleet emissions intensity, and sustainable fuel procurement.2040
• Note 19 of the consolidated financial statements discusses legal proceedings including class-action, derivative, and other litigation.