EXHIBIT 12.1
FEDEX CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(UNAUDITED)
(IN MILLIONS, EXCEPT RATIOS)
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| Three Months Ended |
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| August 31, |
| Year Ended May 31, |
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| 2015 |
| 2014 |
| 2015 |
| 2014 |
| 2013 |
| 2012(1) |
| 2011 |
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Earnings: |
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Income before income taxes |
| $ | 1,084 |
| $ | 1,012 |
| $ | 1,627 |
| $ | 3,658 |
| $ | 4,338 |
| $ | (444 | ) | $ | 2,002 |
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Add back: |
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Interest expense, net of capitalized interest |
| 68 |
| 51 |
| 235 |
| 160 |
| 82 |
| 52 |
| 86 |
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Amortization of debt issuance costs |
| 2 |
| 1 |
| 5 |
| 4 |
| 5 |
| 5 |
| 16 |
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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: |
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Interest expense, net of capitalized interest |
| $ | 68 |
| $ | 51 |
| $ | 235 |
| $ | 160 |
| $ | 82 |
| $ | 52 |
| $ | 86 |
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Capitalized interest |
| 11 |
| 8 |
| 37 |
| 29 |
| 45 |
| 85 |
| 71 |
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Amortization of debt issuance costs |
| 2 |
| 1 |
| 5 |
| 4 |
| 5 |
| 5 |
| 16 |
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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.
