EXHIBIT 12.1

 

FEDEX CORPORATION

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(UNAUDITED)

(IN MILLIONS, EXCEPT RATIOS)

 

 

 

Nine Months Ended

 

 

 

 

 

February 29,
2004

 

February 28,
2003

 

Year Ended May 31,

 

 

 

 

 

2003

 

2002

 

2001

 

2000

 

1999

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

$

676

 

$

887

 

$

1,338

 

$

1,160

 

$

927

 

$

1,138

 

$

1,061

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net of capitalized interest

 

93

 

94

 

125

 

143

 

155

 

121

 

111

 

Amortization of debt issuance costs

 

3

 

3

 

4

 

4

 

2

 

1

 

9

 

Portion of rent expense representative of interest factor

 

532

 

539

 

713

 

710

 

667

 

625

 

571

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings as adjusted

 

$

1,304

 

$

1,523

 

$

2,180

 

$

2,017

 

$

1,751

 

$

1,885

 

$

1,752

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net of capitalized interest

 

$

93

 

$

94

 

$

125

 

$

143

 

$

155

 

$

121

 

$

111

 

Capitalized interest

 

8

 

13

 

16

 

27

 

27

 

35

 

39

 

Amortization of debt issuance costs

 

3

 

3

 

4

 

4

 

2

 

1

 

9

 

Portion of rent expense representative of interest factor

 

532

 

539

 

713

 

710

 

667

 

625

 

571

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

636

 

$

649

 

$

858

 

$

884

 

$

851

 

$

782

 

$

730

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges

 

2.1

 

2.3

 

2.5

 

2.3

 

2.1

 

2.4

 

2.4