Federal Express 2011 Annual Report Download - page 68

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66
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 20: CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
We are required to present condensed consolidating financial information in order for the subsidiary guarantors (other than FedEx Express) of our
public debt to continue to be exempt from reporting under the Securities Exchange Act of 1934, as amended.
The guarantor subsidiaries, which are wholly owned by FedEx, guarantee $1 billion of our debt. The guarantees are full and unconditional
and joint and several. Our guarantor subsidiaries were not determined using geographic, service line or other similar criteria, and as a result,
the “Guarantor Subsidiaries” and “Non–guarantor Subsidiaries” columns each include portions of our domestic and international operations.
Accordingly, this basis of presentation is not intended to present our financial condition, results of operations or cash flows for any purpose other
than to comply with the specific requirements for subsidiary guarantor reporting.
Condensed consolidating financial statements for our guarantor subsidiaries and non–guarantor subsidiaries are presented in the following
tables (in millions):
CONDENSED CONSOLIDATING BALANCE SHEETS
May 31, 2011
Parent
Guarantor
Subsidiaries
Non–guarantor
Subsidiaries Eliminations Consolidated
Assets
Current Assets
Cash and cash equivalents $ 1,589 $ 279 $ 546 $ (86) $ 2,328
Receivables, less allowances – 3,696 912 (27) 4,581
Spare parts, supplies, fuel, prepaid expenses
and other, less allowances 77 645 44 – 766
Deferred income taxes – 598 12 – 610
Total current assets 1,666 5,218 1,514 (113) 8,285
Property and Equipment, at Cost 24 31,916 1,746 – 33,686
Less accumulated depreciation and amortization 18 17,071 1,054 – 18,143
Net property and equipment 6 14,845 692 – 15,543
Intercompany Receivable – – 1,317 (1,317) –
Goodwill – 1,564 762 – 2,326
Investment in Subsidiaries 15,404 2,705 – (18,109) –
Other Assets 1,652 1,039 63 (1,523) 1,231
$ 18,728 $ 25,371 $ 4,348 $ (21,062) $ 27,385
Liabilities and Stockholders’ Investment
Current Liabilities
Current portion of long–term debt $ – $ 18 $ – $ – $ 18
Accrued salaries and employee benefits 50 1,071 147 – 1,268
Accounts payable – 1,385 430 (113) 1,702
Accrued expenses 198 1,563 133 – 1,894
Total current liabilities 248 4,037 710 (113) 4,882
Long–Term Debt, Less Current Portion 1,000 667 – – 1,667
Intercompany Payable 1,095 222 – (1,317) –
Other Long–Term Liabilities
Deferred income taxes – 2,842 17 (1,523) 1,336
Other liabilities 1,165 3,001 114 – 4,280
Total other long–term liabilities 1,165 5,843 131 (1,523) 5,616
Stockholders’ Investment 15,220 14,602 3,507 (18,109) 15,220
$ 18,728 $ 25,371 $ 4,348 $ (21,062) $ 27,385