Item 2. Properties
ITEM 2. PROPERTIES
FedEx Express Segment
FedEx Express’s principal owned and leased properties include its aircraft, vehicles, major sorting and handling facilities, administration buildings, FedEx Drop Boxes and data processing and telecommunications equipment.
Aircraft and Vehicles
As of May 31, 2021, FedEx Express’s aircraft fleet consisted of the following:
Description
Owned
Leased
Total
Maximum Gross
Structural Payload
(Pounds per Aircraft)
Boeing B777F
44
3
47
233,300
Boeing MD11
50
7
57
192,600
Boeing MD10-30
13
—
13
175,900
Boeing 767F
102
—
102
127,100
Airbus A300-600
56
12
68
106,600
Boeing 757-200
119
—
119
63,000
ATR-72
21
—
21
17,970
ATR-72 600F
2
—
2
19,290
ATR-42
20
—
20
12,070
Cessna 208B
235
—
235
2,830
Total
662
22
684
At May 31, 2021, FedEx Express operated approximately 87,000 vehicles in its global network.
- 34 -
Aircraft Purchase Commitments
The following table is a summary of the number and type of aircraft we were committed to purchase as of July 15, 2021, with the year of expected delivery:
Cessna
SkyCourier 408
ATR 72-600F
B767F (1)
B777F (2)
Total
2022
9
9
9
3
30
2023
12
6
13
2
33
2024
12
6
14
4
36
2025
12
6
10
2
30
2026
5
1
—
—
6
Thereafter
—
—
—
—
—
Total
50
28
46
11
135
( 1 )
On June 22, 2021, FedEx Express exercised options to purchase an additional 20 B767F aircraft, ten of which will be delivered in 2024 and ten of which will be delivered in 2025. These aircraft are reflected in the table above. As of July 15, 2021, our obligation to purchase two B767F aircraft is conditioned upon there being no event that causes FedEx Express or its employees not to be covered by the RLA.
( 2 )
As of July 15, 2021, our obligation to purchase four B777F aircraft is conditioned upon there being no event that causes FedEx Express or its employees not to be covered by the RLA.
As of May 31, 2021, we had $948 million in deposits and progress payments on aircraft purchases and other planned aircraft-related transactions. See Note 18 of the accompanying consolidated financial statements for more information about our purchase commitments and options.
- 35 -
Sorting and Handling Facilities
At May 31, 2021, FedEx Express operated the following major sorting and handling facilities:
Location
Acres
Square
Feet
Sorting
Capacity
(per hour) (1)
Lessor
Lease
Expiration
Calendar Year
Primary
Memphis, Tennessee
800
3,607,973
484,000
Memphis-Shelby County
Airport Authority
2036
National
Indianapolis, Indiana
482
2,509,000
120,000
Indianapolis Airport
Authority
2053
Miami, Florida (2)
29
143,322
7,000
Aero Miami FX, LLC
2028
Regional
Fort Worth, Texas
168
948,000
76,000
Fort Worth Alliance Airport
Authority
2041
Newark, New Jersey
70
595,000
156,000
Port Authority of New York
and New Jersey
2030
Oakland, California
75
587,700
63,000
Port of Oakland
2036
Greensboro, N. Carolina
165
593,000
23,000
Piedmont Triad Airport Authority
2031
Metropolitan
Chicago, Illinois
54
481,350
23,000
City of Chicago
2028
Los Angeles, California
34
305,300
57,000
City of Los Angeles
2025 (3)
International
Anchorage, Alaska (4)
64
332,000
25,000
State of Alaska,
Department of
Transportation and
Public Facilities
2023
Paris, France (5)
111
1,238,000
52,000
Aeroports de Paris
2048
Cologne, Germany (5)
11
325,000
20,000
Cologne Bonn Airport
2040
Guangzhou, China (6)
155
873,006
56,000
Guangdong Airport
Management Corp.
2029
Osaka, Japan (6)
17
425,206
9,000
Kansai Airports
2024
(1)
Documents and packages.
(2)
Handles international express package and freight shipments to and from Latin America and the Caribbean.
(3)
Property is held under two separate leases — we are currently renewing the lease for the sorting and handling facility that expired in April 2021 on a month-to-month basis while a new lease is being negotiated, and the lease for the ramp expansion expires in calendar 2025.
(4)
Handles international express package and freight shipments to and from Asia, Europe and North America.
(5)
Handles intra-Europe express package and freight shipments, as well as international express package and freight shipments to and from Europe.
(6)
Handles intra-Asia express package and freight shipments, as well as international express package and freight shipments to and from Asia.
FedEx Express’s primary sorting facility, which serves as the center of its multiple hub-and-spoke system, is located at the Memphis International Airport. FedEx Express’s facilities at the Memphis International Airport also include aircraft hangars, aircraft ramp areas, vehicle parking areas, flight training and fuel facilities, the FedEx Cold Chain Center, administrative offices and warehouse space.
- 36 -
FedEx Express leases these facilities from the Memphis-Shelby County Airport Authority (the “Authority”). The lease obligates FedEx Express to maintain and insure the leased property and to pay all related taxes, assessments and other charges. The lease is subordinate to, and FedEx Express’s rights thereunder could be affected by, any future lease or agreement between the Authority and the U.S. government.
FedEx Express has additional major international sorting-and-handling facilities located at Narita Airport in Tokyo and Stansted Airport outside London. FedEx Express also has a substantial presence at airports in Hong Kong, Taiwan and Dubai. TNT Express operates a central air hub near Liege, Belgium and a central European road hub in Duiven, The Netherlands. During 2020 we substantially completed projects across our European hub and station locations that allow interoperability between the ground networks for both FedEx Express and TNT Express packages. We expect to complete the final phase of international air network interoperability in early calendar 2022. See “Item 1. Business” under “FedEx Express Segment—International Expansion” for additional information on the integration of TNT Express.
Administrative and Other Properties and Facilities
The World Headquarters of FedEx Express is located in southeastern Shelby County, Tennessee. FedEx Express international headquarters are located in Hoofddorp, The Netherlands. As of May 31, 2021, FedEx Express owned or leased 656 facilities for city station operations in the U.S. In addition, over 1,400 city stations are owned or leased throughout FedEx Express’s international network. The majority of these leases are for terms of five to ten years. City stations serve as a sorting and distribution center for a particular city or region. We believe that suitable alternative facilities are available in each locale on satisfactory terms, if necessary.
As of May 31, 2021, FedEx Express had approximately 34,000 Drop Boxes. FedEx Express customers can also ship from approximately 35,000 staffed drop-off locations, including FedEx Office stores and FedEx Authorized ShipCenters. Internationally, FedEx Express had approximately 14,000 drop-off locations.
FedEx Ground Segment
FedEx Ground’s corporate headquarters are located in the Pittsburgh, Pennsylvania area. As of May 31, 2021, FedEx Ground owned or leased 625 facilities, including 40 hubs. In addition, approximately 96,000 vehicles owned or leased by service providers support FedEx Ground’s business. Of the 538 facilities that supported FedEx Home Delivery as of May 31, 2021, 511 were co-located with existing FedEx Ground facilities. Leased facilities generally have terms of five years or less. The 40 hub facilities are strategically located to cover the geographic area served by FedEx Ground. The hub facilities average approximately 475,000 square feet and range in size from approximately 107,000 to 1,054,000 square feet.
FedEx Ground is adding new and expanded facilities and automation solutions to optimize FedEx Ground network capacity. See “Item 1. Business—Business Segments—FedEx Ground Segment” of this Annual Report for additional information.
FedEx Freight Segment
FedEx Freight’s corporate headquarters are located in Memphis, Tennessee, with some administrative offices in Harrison, Arkansas. As of May 31, 2021, FedEx Freight operated approximately 29,000 vehicles and nearly 400 service centers, which are strategically located to provide service throughout North America. These facilities range in size from approximately 1,000 to 280,000 square feet of office and dock space.
FedEx Services Segment
FedEx Services’ corporate headquarters are located in Memphis, Tennessee. FedEx Services leases state-of-the-art technology centers in Collierville, Tennessee and Colorado Springs, Colorado. These facilities house personnel responsible for strategic software development and other functions that support FedEx’s technology and e-commerce solutions.
The FedEx Authorized ShipCenter program offers U.S. domestic and international FedEx Express and FedEx Ground shipping and drop-off services through a network of nearly 4,900 franchised and independent “pack and ship” retail locations. The FedEx OnSite network includes approximately 18,000 drop-off locations at Walgreens, Dollar General and Albertsons stores. Additionally, FedEx Services has an agreement with Office Depot, Inc. to offer U.S. domestic and international FedEx Express and FedEx Ground shipping and drop-off services at Office Depot and OfficeMax retail locations (approximately 1,100 locations).
- 37 -
FedEx Office Operating Segment
FedEx Office’s corporate headquarters are located in Plano, Texas. As of May 31, 2021, FedEx Office operated approximately 2,200 customer-facing stores and 31 centralized production centers. Substantially all FedEx Office stores are leased, generally for terms of five to ten years with varying renewal options. FedEx Office operates approximately 200 stores at hotels, convention centers, hospitals, universities and corporate campuses, with the remainder generally located in strip malls, office buildings and stand-alone structures. FedEx Office’s customer-facing stores average approximately 3,200 square feet in size. As of May 31, 2021, we operate over 340 FedEx Office locations inside Walmart stores.
FedEx Logistics Operating Segment
FedEx Logistics’ corporate headquarters are located in Memphis, Tennessee. As of May 31, 2021, FedEx Trade Networks Transport & Brokerage had approximately 130 offices in 110 service locations throughout North America and in Africa, Asia-Pacific, Europe, India, Latin America, the Middle East and Australia/New Zealand. In addition, as of May 31, 2021, FedEx Supply Chain had approximately 110 facilities through which it operates its supply chain logistics services.