Full Description

FedEx Corporation (FedEx), incorporated on October 2, 1997, is a holding company. The Company provides a portfolio of transportation, e-commerce and business services through companies that compete collectively, operate independently and manage collaboratively, under the respected FedEx brand. These companies are included in four business segments: FedEx Express, FedEx Ground, FedEx Freight and FedEx Services. Effective June 1, 2009, Caribbean Transportation Services, Inc. (CTS), a provider of airfreight forwarding services between the United States and Puerto Rico, the Dominican Republic, Costa Rica and the Caribbean Islands, was merged with and into FedEx Express.

Federal Express Corporation (FedEx Express) is the express transportation company, offering time-certain delivery within one to three business days. The FedEx Express segment also includes FedEx Trade Networks, Inc., which provides international trade services, specializing in customs brokerage and global ocean and air cargo distribution. FedEx Ground Package System, Inc. (FedEx Ground) is a provider of small-package ground delivery service. FedEx Ground provides day-certain service to every business address in the United States and Canada, as well as residential delivery through FedEx Home Delivery. The FedEx Ground segment also includes FedEx SmartPost, Inc., which specializes in the consolidation and delivery of high volumes of low-weight, less time-sensitive, business-to-consumer packages using the United States Postal Service or Canada Post Corporation for final delivery to any residential address or post office (PO) Box in the United States and Canada.

FedEx Freight is a United States provider of less-than-truckload (LTL) freight services through its FedEx Freight business (regional LTL freight services) and its FedEx National LTL business (long-haul LTL freight services). The FedEx Freight segment also includes FedEx Custom Critical, Inc., a critical shipment carrier. FedEx Corporate Services, Inc. (FedEx Services) provides its other companies with sales, marketing and information technology support, as well as customer service support through FedEx Customer Information Services, Inc. The FedEx Services segment also includes FedEx Office and Print Services, Inc. (FedEx Office), a provider of document solutions and business services, and FedEx Global Supply Chain Services, Inc., which offers a range of supply chain solutions.

FedEx Express Segment

FedEx Express has approximately 57,000 drop-off locations (including FedEx Office and Print Centers), 654 aircraft and approximately 51,000 vehicles and trailers in its integrated global network. FedEx Express offers a range of shipping services for delivery of packages and freight. Overnight package services are backed by money-back guarantees and extend to the entire United States population. FedEx Express offers three United States overnight delivery services: FedEx First Overnight, FedEx Priority Overnight and FedEx Standard Overnight. FedEx SameDay service is available for urgent shipments up to 70 pounds to any United States destination. FedEx Express also offers express freight services backed by money-back guarantees to handle the needs of the time-definite global freight market.

International express delivery with a money-back guarantee is available to more than 220 countries and territories, with a variety of time-definite services to meet distinct customer needs. FedEx Express also offers an international freight service, backed by a money-back guarantee, real-time tracking and customs clearance. Under an agreement with the United States Postal Service that runs through September 2013, FedEx Express provides domestic air transportation services to the United States Postal Service, including for its First-Class, Priority and Express Mail. FedEx Express also has approximately 5,000 drop boxes at United States Post Offices in approximately 340 metropolitan areas and provides transportation and delivery for the United States Postal Service’s international delivery service called Global Express Guaranteed (GXG).

FedEx Express’s primary sorting facility, located in Memphis, serves as the center of the company’s multiple hub-and-spoke system. A second national hub facility is located in Indianapolis. In addition to these national hubs, FedEx Express operates regional hubs in Newark, Oakland, and Fort Worth and metropolitan sorting facilities in Los Angeles and Chicago. In June 2009, FedEx Express began operations at a regional hub in Greensboro, North Carolina. Facilities in Anchorage, Paris and Guangzhou serve as sorting facilities for express package and freight traffic moving to and from Asia, Europe and North America. FedEx Office offers retail access to FedEx Express shipping services at all of its United States locations.

The Company competes with United Parcel Service, Inc., DHL, United Parcel Service, Inc., United States Postal Service and TNT.

FedEx Ground Segment

FedEx Ground serves customers in the North American small-package market, focusing on business and residential delivery of packages weighing up to 150 pounds. Ground service is provided to 100% of the United States population and overnight service up to 400 miles to approximately 100% of the United States population. Service is also provided to approximately 100% of the Canadian population. In addition, FedEx Ground offers service to Alaska and Hawaii through a ground and air network operation coordinated with other transportation providers. In addition to FedEx Ground’s business-to-business service, the company offers FedEx Home Delivery, which reaches approximately 100% of United States residences.

FedEx Ground operates a multiple hub-and-spoke sorting and distribution system consisting of 520 facilities, including 32 hubs, in the United States and Canada. FedEx Ground conducts its operations primarily with approximately 22,500 owner-operated vehicles and 31,500 company-owned trailers. FedEx Office offers retail access to FedEx Ground shipping services at all of its United States locations. FedEx Ground is also available as a service option at many FedEx Authorized ShipCenters in the United States. As of May 31, 2009, approximately 60% of all FedEx Ground service areas nationwide are supported by multiple-route contractors, which comprise approximately 35% of all FedEx Ground contractors.

FedEx SmartPost, through its network of 22 distribution hubs, provides delivery Monday through Saturday to all residential addresses in the United States, including PO Boxes and military destinations. During the fiscal year ended May 31, 2009 (fiscal 2009), FedEx SmartPost expanded its service into Canada for U.S. shippers by using the residential delivery capabilities of the Canada Post Corporation. The new service, FedEx SmartPost International, is available to all residential addresses, including PO Boxes, in Canada and includes around the clock shipment tracking status updates via fedex.com.

FedEx Freight Segment

FedEx Freight Corporation provides a range of LTL freight services through its FedEx Freight (regional LTL freight services), FedEx National LTL (long-haul LTL freight services) and FedEx Freight Canada businesses. Through a network of service centers and information systems, FedEx Freight provides service to all United States ZIP Codes (including Alaska and Hawaii) with transit times. During fiscal 2009, FedEx Freight reduced transit times by at least one day in approximately 2,600 service lanes throughout the United States. Internationally, FedEx Freight Canada offers freight delivery service throughout Canada, and FedEx Freight serves Mexico, Puerto Rico, Central and South America, the Caribbean, Europe and Asia via alliances and purchased transportation. As of May 31, 2009, FedEx Freight Corporation was operating approximately 59,000 vehicles and trailers from a network of 480 service centers.

FedEx Custom Critical provides a range of expedited, time-specific, freight-shipping services throughout the United States, Canada and Mexico. Among its divisions are Surface Expedite, for use and network-based transport of critical shipments and expedited LTL shipments; Air Expedite, which offers an array of air solutions to meet customers’ critical delivery times, and White Glove Services, for shipments that require extra care in handling, temperature control or specialized security. Service is available around the clock, including weekends and holidays

The Company competes with Con-Way Freight, YRC Worldwide Inc., UPS Freight and ABF Freight System, Inc.

FedEx Services Segment

FedEx Services provides sales, marketing, information technology and customer service support. Through FedEx Services and its subsidiary, FedEx Customer Information Services, Inc., the Company provides a single point of access for many customer support functions. FedEx Services offers a range of supply chain solutions, including critical inventory logistics, transportation management, fulfillment and fleet services, through its FedEx Global Supply Chain Services subsidiary. FedEx Global Supply Chain Services focuses on information technology-sensitive business to meet the needs of its customers and to drive transportation business to other FedEx operating companies. FedEx Global Supply Chain Services’ service offerings use electronic data interchanges to speed communications between customers and their suppliers.

FedEx Office is a provider of document and business services. FedEx Office’s global network of digitally-connected locations offers access to copying and digital printing, professional finishing, document creation, signs and graphics, direct mail, Web-based printing, Internet access, computer rentals, videoconferencing and the full range of FedEx day-definite ground shipping and time-definite global express shipping services. As of May 31, 2009, FedEx Office’s operations included approximately 1,800 FedEx Office and Print Centers in the United States and 135 additional locations in seven other countries, as well as 29 commercial production centers. FedEx Office is headquartered in Dallas, Texas.