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Analysis of Inventory Dif�culty: Advanced

Inventory Accounting Policy

SPARE PARTS, SUPPLIES AND FUEL Spare parts (principally aircraft-related) are reported at weighted-average cost. Allowances for obsolescence are provided for spare

parts currently identi�ed as excess or obsolete as well as expected to be on hand at the date the aircraft are retired from service.

These allowances are provided over the estimated useful life of the related aircraft and engines. The majority of FedEx's supplies and

fuel are reported at weighted-average cost.

Source: FedEx Corp., Annual Report

Inventory Disclosure

FedEx Corp., Statement of Financial Position, Inventory

Source: Based on data from FedEx Corp. Annual Reports

Item Description The company

Spare parts, supplies and fuel, less

allowances

Carrying amount (lower of cost or market)

as of the balance sheet date of inventories

less all valuation and other allowances.

Excludes noncurrent inventory balances

(expected to remain on hand past one year

or one operating cycle, if longer).

FedEx Corp.'s spare parts, supplies and fuel,

less allowances increased from 2016 to

2017 and from 2017 to 2018.

May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014 May 31, 2013

Spare parts, supplies and fuel,

less allowances

525  514  496  498  463  457

FedEx Corp. (FDX)

Inventory Accounting Policy

Inventory Disclosure

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