Federal Express 10-Q 2004 Q3 Quarterly report

EXHIBIT 12.1

FEDERAL EXPRESS CORPORATION (FEDEX EXPRESS)

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(UNAUDITED)

(IN MILLIONS, EXCEPT RATIOS)

	Nine Months Ended
	February 29, 2004		February 28, 2003		Year Ended May 31,
					2003		2002		2001		2000		1999
Earnings:
Income before income taxes	$	168	$	420	$	689	$	703	$	786	$	843	$	771
Add back:
Interest expense, net of capitalized interest	43		42		57		74		75		82		91
Amortization of debt issuance costs	—		—		—		1		1		1		9
Portion of rent expense representative of interest factor	435		452		599		594		563		575		535
Earnings as adjusted	$	646	$	914	$	1,345	$	1,372	$	1,425	$	1,501	$	1,406
Fixed Charges:
Interest expense, net of capitalized interest	$	43	$	42	$	57	$	74	$	75	$	82	$	91
Capitalized interest	6		12		13		23		23		30		35
Amortization of debt issuance costs	—		—		—		1		1		1		9
Portion of rent expense representative of interest factor	435		452		599		594		563		575		535
	$	484	$	506	$	669	$	692	$	662	$	688	$	670
Ratio of Earnings to Fixed Charges	1.3		1.8		2.0		2.0		2.2		2.2		2.1