What explains the fluctuation in FedEx's income tax expenses since 2023?

FedEx's income tax expenses have fluctuated due to several factors: 1. **Effective Tax Rate Changes**: The effective tax rate for FedEx increased to 23.5% in the fourth quarter of 2023, up from 16.6% in the same period of 2022. This increase is primarily due to the release of certain unrecognized tax benefits. 2. **Global Operations**: FedEx's global operations, including international shipping, may be subject to different tax rates and regulations in various countries. Changes in the tax regimes or tax rates in these countries can impact the company's overall tax expense. 3. **Financial Performance**: FedEx's net income has shown a decrease from $3.97 billion in 2023 to $4.33 billion in 2024. While net income has increased, the company's total revenue has slightly decreased from $90.16 billion to $87.69 billion over the same period. The slight decline in revenue could contribute to a fluctuation in tax expenses as a percentage of revenue. 4. **Strategic Initiatives**: FedEx has been implementing strategic initiatives, such as the DRIVE program, which aims to transform operations and reduce structural costs. These initiatives may impact tax expenses as they affect the company's overall profitability and the recognition of tax benefits. In summary, the fluctuation in FedEx's income tax expenses since 2023 is primarily due to changes in the effective tax rate, global operational factors, financial performance, and strategic initiatives.