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FEDEX CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(UNAUDITED)
(IN MILLIONS, EXCEPT RATIOS)
| Nine Months Ended February 28, | Year Ended May 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2003 | 2002 | 2002 | 2001 | 2000 | 1999 | 1998 | |||||||||||||||
Earnings: | ||||||||||||||||||||||
Income before income taxes | $ | 887 | $ | 789 | $ | 1,160 | $ | 927 | $ | 1,138 | $ | 1,061 | $ | 900 | ||||||||
Add back: | ||||||||||||||||||||||
Interest expense, net of capitalized interest | 94 | 113 | 143 | 155 | 121 | 111 | 136 | |||||||||||||||
Amortization of debt issuance costs | 3 | 3 | 4 | 2 | 1 | 9 | 1 | |||||||||||||||
Portion of rent expense representative of interest factor | 539 | 535 | 710 | 667 | 625 | 571 | 508 | |||||||||||||||
Earnings as adjusted | $ | 1,523 | $ | 1,440 | $ | 2,017 | $ | 1,751 | $ | 1,885 | $ | 1,752 | $ | 1,545 | ||||||||
Fixed Charges: | ||||||||||||||||||||||
Interest expense, net of capitalized interest | $ | 94 | $ | 113 | $ | 143 | $ | 155 | $ | 121 | $ | 111 | $ | 136 | ||||||||
Capitalized interest | 13 | 23 | 27 | 27 | 35 | 39 | 33 | |||||||||||||||
Amortization of debt issuance costs | 3 | 3 | 4 | 2 | 1 | 9 | 1 | |||||||||||||||
Portion of rent expense representative of interest factor | 539 | 535 | 710 | 667 | 625 | 571 | 508 | |||||||||||||||
$ | 649 | $ | 674 | $ | 884 | $ | 851 | $ | 782 | $ | 730 | $ | 678 | |||||||||
Ratio of Earnings to Fixed Charges | 2.3 | 2.1 | 2.3 | 2.1 | 2.4 | 2.4 | 2.3 | |||||||||||||||