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FEDEX CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(UNAUDITED)
(IN MILLIONS, EXCEPT RATIOS)
| Three Months Ended August 31, | Year Ended May 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2003 | 2002 | 2003 | 2002 | 2001 | 2000 | 1999 | |||||||||||||||
Earnings: | ||||||||||||||||||||||
Income before income taxes | $ | 196 | $ | 255 | $ | 1,338 | $ | 1,160 | $ | 927 | $ | 1,138 | $ | 1,061 | ||||||||
Add back: | ||||||||||||||||||||||
Interest expense, net of capitalized interest | 18 | 32 | 125 | 143 | 155 | 121 | 111 | |||||||||||||||
Amortization of debt issuance costs | 1 | 1 | 4 | 4 | 2 | 1 | 9 | |||||||||||||||
Portion of rent expense representative of interest factor | 171 | 177 | 713 | 710 | 667 | 625 | 571 | |||||||||||||||
Earnings as adjusted | $ | 386 | $ | 465 | $ | 2,180 | $ | 2,017 | $ | 1,751 | $ | 1,885 | $ | 1,752 | ||||||||
Fixed Charges: | ||||||||||||||||||||||
Interest expense, net of capitalized interest | $ | 18 | $ | 32 | $ | 125 | $ | 143 | $ | 155 | $ | 121 | $ | 111 | ||||||||
Capitalized interest | 3 | 5 | 16 | 27 | 27 | 35 | 39 | |||||||||||||||
Amortization of debt issuance costs | 1 | 1 | 4 | 4 | 2 | 1 | 9 | |||||||||||||||
Portion of rent expense representative of interest factor | 171 | 177 | 713 | 710 | 667 | 625 | 571 | |||||||||||||||
$ | 193 | $ | 215 | $ | 858 | $ | 884 | $ | 851 | $ | 782 | $ | 730 | |||||||||
Ratio of Earnings to Fixed Charges | 2.0 | 2.2 | 2.5 | 2.3 | 2.1 | 2.4 | 2.4 | |||||||||||||||