Mark-to-market pension accounting adjustments FedEx Corporation reported the following in its annual earnings release. Module Dollars in millions, except EPS GAAP measure TNT expenses and operating results Business realignment costs Net income Diluted EPS $756 $2.84 4,173 15.71 314 1.18 243 0.91 FedEx Ground legal matters Net U.S. deferred tax remeasurement Non-GAAP measure 43 0.16 4 0.02 $5,533 $20.82 What amount did FedEx report as net income on its income statement? $ The company's average equity was $18,587 million during the year. Compute its return on equity using (i) the GAAP net income, and (ii) the non-GAAP net income. i. Compute return on equity (ROE) using the GAAP net income Note: 1. Select the appropriate numerator and denominator used to compute ROE using the GAAP net income from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute ROE using the GAAP net income. Numerator Denominator ROE using GAAP net income ii. Compute return on equity (ROE) using the non-GAAP net income Note: 1. Select the appropriate numerator and denominator used to compute ROE using the non-GAAP net income from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute ROE using the non-GAAP net income. Numerator Denominator ROE using non-GAAP net income %
Mark-to-market pension accounting adjustments FedEx Corporation reported the following in its annual earnings release. Module Dollars in millions, except EPS GAAP measure TNT expenses and operating results Business realignment costs Net income Diluted EPS $756 $2.84 4,173 15.71 314 1.18 243 0.91 FedEx Ground legal matters Net U.S. deferred tax remeasurement Non-GAAP measure 43 0.16 4 0.02 $5,533 $20.82 What amount did FedEx report as net income on its income statement? $ The company's average equity was $18,587 million during the year. Compute its return on equity using (i) the GAAP net income, and (ii) the non-GAAP net income. i. Compute return on equity (ROE) using the GAAP net income Note: 1. Select the appropriate numerator and denominator used to compute ROE using the GAAP net income from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute ROE using the GAAP net income. Numerator Denominator ROE using GAAP net income ii. Compute return on equity (ROE) using the non-GAAP net income Note: 1. Select the appropriate numerator and denominator used to compute ROE using the non-GAAP net income from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute ROE using the non-GAAP net income. Numerator Denominator ROE using non-GAAP net income %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Mark-to-market pension accounting adjustments
FedEx Corporation reported the following in its annual earnings release.
Module
Dollars in millions, except EPS
GAAP measure
TNT expenses and operating results
Business realignment costs
Net income Diluted EPS
$756
$2.84
4,173
15.71
314
1.18
243
0.91
FedEx Ground legal matters
Net U.S. deferred tax remeasurement
Non-GAAP measure
43
0.16
4
0.02
$5,533
$20.82
What amount did FedEx report as net income on its income statement? $
The company's average equity was $18,587 million during the year. Compute its return on equity using (i) the GAAP net income, and (ii) the non-GAAP net income.
i. Compute return on equity (ROE) using the GAAP net income
Note: 1. Select the appropriate numerator and denominator used to compute ROE using the GAAP net income from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute
ROE using the GAAP net income.
Numerator
Denominator
ROE using
GAAP net income
ii. Compute return on equity (ROE) using the non-GAAP net income
Note: 1. Select the appropriate numerator and denominator used to compute ROE using the non-GAAP net income from the drop-down menu options. 2. Enter the numerator and denominator amounts to
compute ROE using the non-GAAP net income.
Numerator
Denominator
ROE using
non-GAAP net income
%
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