Federal Express 2011 Annual Report Download - page 64

62
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table presents revenue by service type and geographic
information for the years ended or as of May 31 (in millions): NOTE 14: SUPPLEMENTAL CASH FLOW
INFORMATION
Cash paid for interest expense and income taxes for the years ended
May 31 was as follows (in millions):
NOTE 15: GUARANTEES AND
INDEMNIFICATIONS
In conjunction with certain transactions, primarily the lease, sale or
purchase of operating assets or services in the ordinary course of
business, we may provide routine guarantees or indemnifications
(e.g., environmental, fuel, tax and software infringement), the terms
of which range in duration, and often they are not limited and have
no specified maximum obligation. As a result, the overall maximum
potential amount of the obligation under such guarantees and indem-
nifications cannot be reasonably estimated. Historically, we have
not been required to make significant payments under our guarantee
or indemnification obligations and no amounts have been recognized
in our financial statements for the underlying fair value of these
obligations.
Special facility revenue bonds have been issued by certain municipali-
ties primarily to finance the acquisition and construction of various
airport facilities and equipment. These facilities were leased to us
and are accounted for as either capital leases or operating leases.
FedEx Express has unconditionally guaranteed $667 million in principal
of these bonds (with total future principal and interest payments of
approximately $886 million as of May 31, 2011) through these leases.
Of the $667 million bond principal guaranteed, $116 million was
included in capital lease obligations in our balance sheet at May 31,
2011. The remaining $551 million has been accounted for as operating
leases.
2011 2010 2009
Revenue by Service Type
FedEx Express segment:
Package:
U.S. overnight box $ 6,128 $ 5,602 $ 6,074
U.S. overnight envelope 1,736 1,640 1,855
U.S. deferred 2,805 2,589 2,789
Total domestic package revenue 10,669 9,831 10,718
International Priority (IP) 8,228 7,087 6,978
International domestic(1) 653 578 565
Total package revenue 19,550 17,496 18,261
Freight:
U.S. 2,188 1,980 2,165
International priority 1,722 1,303 1,104
International airfreight 283 251 369
Total freight revenue 4,193 3,534 3,638
Other(2) 838 525 465
Total FedEx Express segment 24,581 21,555 22,364
FedEx Ground segment 8,485 7,439 7,047
FedEx Freight segment 4,911 4,321 4,415
FedEx Services segment 1,684 1,770 1,977
Other and eliminations (357) (351) (306)
$ 39,304 $ 34,734 $ 35,497
Geographical Information(3)
Revenues:
U.S. $ 27,461 $ 24,852 $ 25,819
International:
FedEx Express segment 11,437 9,547 9,363
FedEx Ground segment 177 140 124
FedEx Freight segment 84 60 39
FedEx Services segment 145 135 152
Total international revenue 11,843 9,882 9,678
$ 39,304 $ 34,734 $ 35,497
Noncurrent assets:
U.S. $ 17,235 $ 16,089 $ 15,615
International 1,865 1,529 1,513
$ 19,100 $ 17,618 $ 17,128
(1) International domestic revenues include our international intra–country domestic express
operations.
(2) Other revenues includes FedEx Trade Networks and, beginning in the second quarter of 2010,
FedEx SupplyChain Systems.
(3) International revenue includes shipments that either originate in or are destined to locations
outside the United States. Noncurrent assets include property and equipment, goodwill
and other long–term assets. Our flight equipment registered in the U.S. is included as U.S.
assets; however, many of our aircraft operate internationally.
2011 2010 2009
Cash payments for:
Interest (net of capitalized interest) $ 93 $ 88 $ 61
Income taxes $ 493 $ 322 $ 517
Income tax refunds received (106) (279) (8)
Cash tax payments, net $ 387 $ 43 $ 509