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Form 8-K FEDEX CORP For: May 31

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June 1, 2015 5:22 PM EDT

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 31, 2015

 

 

FedEx Corporation

(Exact name of registrant as specified in its charter)

 

 

Commission File Number 1-15829

 

Delaware   62-1721435

(State or other jurisdiction

of incorporation)

  

(IRS Employer

Identification No.)

 

942 South Shady Grove Road, Memphis, Tennessee   38120
(Address of principal executive offices)   (ZIP Code)

Registrant’s telephone number, including area code: (901) 818-7500

 

 

Federal Express Corporation

(Exact name of registrant as specified in its charter)

 

 

Commission File Number 1-7806

 

Delaware   71-0427007

(State or other jurisdiction

of incorporation)

  

(IRS Employer

Identification No.)

 

3610 Hacks Cross Road, Memphis, Tennessee   38125
(Address of principal executive offices)   (ZIP Code)

Registrant’s telephone number, including area code: (901) 369-3600

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

SECTION 2. FINANCIAL INFORMATION.

 

Item 2.02. Results of Operations and Financial Condition.

Attached as Exhibit 99.1 and incorporated herein by reference is a copy of the press release of FedEx Corporation (“FedEx”), dated June 1, 2015, relating to the matters described below in Items 2.05 and 2.06 of this report, which will be included in FedEx’s financial results for the fourth quarter ended May 31, 2015. The press release is being furnished pursuant to Item 2.02 of Form 8-K and General Instruction B.2 thereunder. The information in the release shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

 

Item 2.05. Costs Associated with Exit or Disposal Activities.

 

Item 2.06. Material Impairments.

On May 31, 2015, the FedEx Board of Directors approved the permanent retirement from service of seven MD11 aircraft and 12 related engines, three A300 aircraft and three related engines, four A310-300 aircraft and three related engines and one MD10-10 aircraft and three related engines, and related parts. As a consequence, a non-cash impairment charge of $246 million was recorded in the fourth quarter of fiscal 2015. The decision to permanently retire these aircraft and engines aligns with Federal Express Corporation’s plans to rationalize capacity and modernize its aircraft fleet to more effectively serve its customers.

The FedEx Board also approved shortening the depreciable lives of nine MD11 engines, three A300 engines and five A310-300 engines, and extending the previously identified retirement dates of 17 MD10-10 aircraft and 32 related engines and six MD10-30 aircraft and eight related engines.

FedEx also recognized in the fourth quarter of fiscal 2015 $30 million in cash charges associated with these actions. These combined retirement changes will not have a material impact on near-term depreciation expense.

Certain statements in this report are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to future events and financial performance. These forward-looking statements involve risks and uncertainties. Actual results may differ materially from those contemplated (expressed or implied) by such forward-looking statements, because of, among other things, the risks and uncertainties you can find in our press releases and other SEC filings, including the risk factors identified under the heading “Risk Factors” in “Management’s Discussion and Analysis of Results of Operations and Financial Condition” in our most recent annual report on Form 10-K, as updated by our quarterly reports on Form 10-Q.

 

1

SECTION 9. FINANCIAL STATEMENTS AND EXHIBITS.

 

Item 9.01. Financial Statements and Exhibits.

 

  (d) Exhibits. The following exhibit is being furnished as part of this Report.

 

Exhibit
Number

   

Description

99.1    Press Release of FedEx Corporation dated June 1, 2015.

 

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.

 

FedEx Corporation
Date: June 1, 2015 By:

/s/ John L. Merino

John L. Merino
Corporate Vice President and Principal Accounting Officer
Federal Express Corporation
Date: June 1, 2015 By:

/s/ Elise L. Jordan

Elise L. Jordan
Senior Vice President and Chief Financial Officer

 

3

EXHIBIT INDEX

 

Exhibit
Number

   

Description

99.1    Press Release of FedEx Corporation dated June 1, 2015.

Exhibit 99.1

 

 

LOGO

FOR IMMEDIATE RELEASE

FedEx Corp. Accelerates Aircraft Retirements

$276 Million Impairment and Related Charges in FY15

MEMPHIS, Tenn., June 1, 2015 … FedEx Corp. (NYSE: FDX) announced today it has permanently retired 15 aircraft and 21 related engines as it continues to rationalize capacity and modernize its aircraft fleet to more effectively serve FedEx Express customers.

The permanent retirement of aircraft and related engines includes:

 

  •   Seven MD11 airframes and 12 related engines;

 

  •   Three A300 airframes and three related engines;

 

  •   Four A310-300 airframes and three related engines; and

 

  •   One MD10-10 airframe and three related engines.

The impact of retiring these aircraft, engines and related parts resulted in a non-cash impairment charge of $246 million recorded in May 2015.

FedEx has also adjusted the retirement schedule of an additional 23 airframes and 57 engines. FedEx also recognized in May 2015 $30 million in cash charges associated with these actions. These combined retirement changes will not have a material impact on near-term depreciation expense.

FedEx Express Aircraft Fleet Facts

 

  •   As of Feb. 28, 2015, FedEx Express’s fleet totaled 673 aircraft, including 383 jet aircraft. For reference, see the Q3 FY15 statistical book at http://investors.fedex.com.

 

  •   During the four quarters ended Feb. 28, 2015, FedEx Express spent $3.15 billion on 1.14 billion gallons of jet fuel.

 

  •   The B767 provides similar capacity as the MD10, with improved reliability, an approximate 30% increase in fuel efficiency and a minimum of a 20% reduction in unit operating costs.

Corporate Overview

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $47 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 325,000 team members to remain “absolutely, positively” focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visit news.fedex.com.

Certain statements in this press release may be considered forward-looking statements, such as statements relating to management’s views with respect to future events and financial performance. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate, our ability to execute on our profit improvement programs, legal challenges or changes related to FedEx Ground’s owner-operators, new U.S. domestic or international government regulation, the impact from any terrorist activities or international conflicts, our ability to effectively operate, integrate and leverage acquired businesses, changes in fuel prices and currency exchange rates, our ability to match capacity to shifting volume levels and other factors which can be found in FedEx Corp.’s and its subsidiaries’ press releases and filings with the SEC.

Media Contact: Jess Bunn 901-818-7463

Investor Contact: Mickey Foster 901-818-7468

Home Page: fedex.com

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