Soo many points made here. Mark to market loss? Why does the company continue to invest the pension in low return instruments? Quote from report :
"The actual rate of return on our U.S. Pension Plan assets of 1.2% was
lower than our expected return of 6.50% primarily due to a challenging
environment for global equities and other risk-seeking asset classes."
Even with our crappy 401(k) I am able to scrape out a 7% return. Using my own brokerage account I have a 24% return. How is it that I, as just an average truck driver, am able to beat the high priced financial wizards we trust our future retirement to? In 2015 we were short $4,007,000,000 in 2016 we are now $5,331,000,000 short in the pension fund. Sound familiar people? 2015 the company paid in $746,000,000 but paid out $815,000,000. 2016 the company paid in $726,000,000 and paid out $912,000,000. Notice how we paid in less year over year and paid out more, WTH? And for those that say FedEx can just write a check to make it current crowd look at those numbers again. We only have 3.5 billion in cash reserves. Still 1.8 billion short if we go all in.
Listed in risk factors are re-branding. I expect the TNT to contribute heavy in that department but also the unnecessary re-branding of every opco to orange. Get ready for future loss in this department and this will weigh on our bonus I suspect if they distribute the cost to each opco rather then out of the general fund.
The labor mention is aimed at the potential increase in benefits as the result of a contract with the four centers. Funny how FedEx marginalizes these four centers but warns of the impact they could have in the future.
Looking at the self insurance accruals expenses it would appear that our Health Care actually went down? I would like to know what falls under the other column?