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FEDEX CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(UNAUDITED)
(IN MILLIONS, EXCEPT RATIOS)
| Six Months Ended November 30, | Year Ended May 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2001 | 2000 | 2001 | 2000 | 1999 | 1998 | 1997 | |||||||||||||||
Earnings: | ||||||||||||||||||||||
Income before income taxes | $ | 595 | $ | 589 | $ | 928 | $ | 1,138 | $ | 1,061 | $ | 900 | $ | 426 | ||||||||
Add back: | ||||||||||||||||||||||
Interest expense, net of capitalized interest | 74 | 73 | 155 | 121 | 111 | 136 | 111 | |||||||||||||||
Amortization of debt issuance costs | — | 1 | 2 | 1 | 9 | 1 | 1 | |||||||||||||||
Portion of rent expense representative of interest factor | 358 | 301 | 667 | 625 | 571 | 508 | 440 | |||||||||||||||
Earnings as adjusted | $ | 1,027 | $ | 964 | $ | 1,752 | $ | 1,885 | $ | 1,752 | $ | 1,545 | $ | 978 | ||||||||
Fixed Charges: | ||||||||||||||||||||||
Interest expense, net of capitalized interest | $ | 74 | $ | 73 | $ | 155 | $ | 121 | $ | 111 | $ | 136 | $ | 110 | ||||||||
Capitalized interest | 17 | 12 | 27 | 35 | 39 | 33 | 46 | |||||||||||||||
Amortization of debt issuance costs | — | 1 | 2 | 1 | 9 | 1 | 1 | |||||||||||||||
Portion of rent expense representative of interest factor | 358 | 301 | 667 | 625 | 571 | 508 | 440 | |||||||||||||||
$ | 449 | $ | 387 | $ | 851 | $ | 782 | $ | 730 | $ | 678 | $ | 597 | |||||||||
Ratio of Earnings to Fixed Charges | 2.3 | 2.5 | 2.1 | 2.4 | 2.4 | 2.3 | 1.6 | |||||||||||||||