FEDEX CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(UNAUDITED)
(IN MILLIONS, EXCEPT RATIOS)
Three Months Ended | ||||||||||||||||||||||||||||
August 31, | Year Ended May 31, | |||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2013 | 2012 (1) | 2011 | ||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||
Income before income taxes | $ | 1,084 | $ | 1,012 | $ | 1,627 | $ | 3,658 | $ | 4,338 | $ | (444 | ) | $ | 2,002 | |||||||||||||
Add back: | ||||||||||||||||||||||||||||
Interest expense, net of capitalized interest | 68 | 51 | 235 | 160 | 82 | 52 | 86 | |||||||||||||||||||||
Amortization of debt issuance costs | 2 | 1 | 5 | 4 | 5 | 5 | 16 | |||||||||||||||||||||
Portion of rent expense representative of interest factor | 237 | 221 | 908 | 876 | 864 | 797 | 852 | |||||||||||||||||||||
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Earnings as adjusted | $ | 1,391 | $ | 1,285 | $ | 2,775 | $ | 4,698 | $ | 5,289 | $ | 410 | $ | 2,956 | ||||||||||||||
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Fixed Charges: | ||||||||||||||||||||||||||||
Interest expense, net of capitalized interest | $ | 68 | $ | 51 | $ | 235 | $ | 160 | $ | 82 | $ | 52 | $ | 86 | ||||||||||||||
Capitalized interest | 11 | 8 | 37 | 29 | 45 | 85 | 71 | |||||||||||||||||||||
Amortization of debt issuance costs | 2 | 1 | 5 | 4 | 5 | 5 | 16 | |||||||||||||||||||||
Portion of rent expense representative of interest factor | 237 | 221 | 908 | 876 | 864 | 797 | 852 | |||||||||||||||||||||
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$ | 318 | $ | 281 | $ | 1,185 | $ | 1,069 | $ | 996 | $ | 939 | $ | 1,025 | |||||||||||||||
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Ratio of Earnings to Fixed Charges | 4.4 | 4.6 | 2.3 | 4.4 | 5.3 | — | 2.9 | |||||||||||||||||||||
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(1) | Earnings for 2012 were inadequate to cover fixed charges. Additional earnings of $529 million would have been necessary to bring the ratio for this period to 1.0. |