EXHIBIT 12.1

 

FEDEX CORPORATION

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(UNAUDITED)

(IN MILLIONS, EXCEPT RATIOS)

 

 

 

Three Months Ended
August 31,

 

Year Ended May 31,

 

 

 

2004

 

2003

 

2004

 

2003

 

2002

 

2001

 

2000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

$

534

 

$

196

 

$

1,319

 

$

1,338

 

$

1,160

 

$

927

 

$

1,138

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net of capitalized interest

 

43

 

18

 

136

 

124

 

144

 

155

 

121

 

Amortization of debt issuance costs

 

2

 

1

 

7

 

4

 

4

 

2

 

1

 

Portion of rent expense representative of interest factor

 

178

 

171

 

712

 

713

 

710

 

667

 

625

 

Earnings as adjusted

 

$

757

 

$

386

 

$

2,174

 

$

2,179

 

$

2,018

 

$

1,751

 

$

1,885

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net of capitalized interest

 

$

43

 

$

18

 

$

136

 

$

124

 

$

144

 

$

155

 

$

121

 

Capitalized interest

 

4

 

3

 

11

 

16

 

27

 

27

 

35

 

Amortization of debt issuance costs

 

2

 

1

 

7

 

4

 

4

 

2

 

1

 

Portion of rent expense representative of interest factor

 

178

 

171

 

712

 

713

 

710

 

667

 

625

 

 

 

$

227

 

$

193

 

$

866

 

$

857

 

$

885

 

$

851

 

$

782

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges

 

3.3

 

2.0

 

2.5

 

2.5

 

2.3

 

2.1

 

2.4