EXHIBIT 12.1
FEDERAL EXPRESS CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(UNAUDITED)
(IN MILLIONS, EXCEPT RATIOS)
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| Six Months Ended |
| Year Ended May 31, |
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| 2004 |
| 2003 |
| 2004 |
| 2003 |
| 2002 |
| 2001 |
| 2000 |
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Earnings: |
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Income (loss) before income taxes |
| $ | 573 |
| $ | (23 | ) | $ | 541 |
| $ | 689 |
| $ | 703 |
| $ | 786 |
| $ | 843 |
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Add back: |
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Interest expense, net of capitalized interest |
| 41 |
| 22 |
| 64 |
| 57 |
| 74 |
| 75 |
| 82 |
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Amortization of debt issuance costs |
| — |
| — |
| — |
| — |
| 1 |
| 1 |
| 1 |
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Portion of rent expense representative of interest factor |
| 294 |
| 288 |
| 583 |
| 599 |
| 594 |
| 563 |
| 575 |
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Earnings as adjusted |
| $ | 908 |
| $ | 287 |
| $ | 1,188 |
| $ | 1,345 |
| $ | 1,372 |
| $ | 1,425 |
| $ | 1,501 |
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Fixed Charges: |
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Interest expense, net of capitalized interest |
| $ | 41 |
| $ | 22 |
| $ | 64 |
| $ | 57 |
| $ | 74 |
| $ | 75 |
| $ | 82 |
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Capitalized interest |
| 4 |
| 4 |
| 7 |
| 13 |
| 23 |
| 23 |
| 30 |
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Amortization of debt issuance costs |
| — |
| — |
| — |
| — |
| 1 |
| 1 |
| 1 |
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Portion of rent expense representative of interest factor |
| 294 |
| 288 |
| 583 |
| 599 |
| 594 |
| 563 |
| 575 |
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| $ | 339 |
| $ | 314 |
| $ | 654 |
| $ | 669 |
| $ | 692 |
| $ | 662 |
| $ | 688 |
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Ratio of Earnings to Fixed Charges |
| 2.7 |
| 0.9 |
| 1.8 |
| 2.0 |
| 2.0 |
| 2.2 |
| 2.2 |
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