FEDEX CORP

CAPITAL RESOURCES

Our operations are capital intensive, characterized by significant investments in aircraft, package handling and sort equipment, technology, vehicles and trailers, and facilities. The amount and timing of capital investments depend on various factors, including pre-existing contractual commitments, anticipated volume growth, domestic and international economic conditions, new or enhanced services, geographical expansion of services, availability of satisfactory financing, and actions of regulatory authorities.

The following table compares capital expenditures by asset category for the periods ended September 30, 2026 and 2025 (in millions):

Capital expenditures increased in the three-month period of 2026 primarily due to increased spending on package handling and ground support equipment and on facilities and other. In the four-month period ended September 30, 2026, capital expenditures increased for the same reasons, partially offset by decreased spending on vehicles and trailers.

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GUARANTOR FINANCIAL INFORMATION

We are providing the following information in compliance with Rule 13-01 of Regulation S-X, “Financial Disclosures about Guarantors and Issuers of Guaranteed Securities” with respect to the senior unsecured debt securities issued by FedEx and Pass-Through Certificates, Series 2020-1AA (the “Certificates”) issued by Federal Express.

The $17.1 billion principal amount of the senior unsecured notes were issued by FedEx under a shelf registration statement and are guaranteed by certain direct and indirect subsidiaries of FedEx (“Guarantor Subsidiaries”). FedEx owns, directly or indirectly, 100% of each Guarantor Subsidiary. The guarantees are (1) unsecured obligations of the respective Guarantor Subsidiary, (2) rank equally with all of their other unsecured and unsubordinated indebtedness, and (3) are full and unconditional and joint and several. If we sell, transfer, or otherwise dispose of all of the capital stock or all or substantially all of the assets of a Guarantor Subsidiary to any person that is not an affiliate of FedEx, the guarantee of that Guarantor Subsidiary will terminate, and holders of debt securities will no longer have a direct claim against such subsidiary under the guarantee. See Note 5 of the accompanying unaudited condensed consolidated financial statements for information regarding the issuance by FedEx of its senior unsecured debt guaranteed by the Guarantor Subsidiaries that was completed during the three-month period ended September 30, 2026.

Additionally, FedEx fully and unconditionally guarantees the payment obligation of Federal Express in respect of the $659 million principal amount of the Certificates. See Note 6 to the financial statements included in our Annual Report for additional information regarding the terms of the Certificates.

On June 1, 2026, the Company completed the Spin-Off. FedEx Freight is therefore no longer an issuer or guarantor of the Company's registered debt securities. The summarized financial information presented below has been recast for all periods presented to reflect the current obligor group and excludes the assets, liabilities, results of operations and cash flows attributable to FedEx Freight and its subsidiaries.

The following tables present summarized financial information for FedEx (as Parent) and the Guarantor Subsidiaries on a combined basis after transactions and balances within the combined entities have been eliminated.

Parent and Guarantor Subsidiaries

The following table presents the summarized balance sheet information as of September 30, 2026 and May 31, 2026 (in millions):

The following table presents the summarized statement of income information for the period ended September 30, 2026 (in millions):

The following tables present summarized financial information for FedEx (as Parent Guarantor) and Federal Express (as Subsidiary Issuer) on a combined basis after transactions and balances within the combined entities have been eliminated.

Parent Guarantor and Subsidiary Issuer

The following table presents the summarized balance sheet information as of September 30, 2026 and May 31, 2026 (in millions):

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The following table presents the summarized statement of income information for the period ended September 30, 2026 (in millions):