1
EXHIBIT 11.1
FEDERAL EXPRESS CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
Net income applicable to common and common equivalent shares and the
weighted average number of shares used in the calculation of earnings per share
for the years ended May 31 were as follows (in thousands, except per share
amounts):
YEAR ENDED MAY 31
-------------------------------
1995 1994 1993
-------- -------- -------
Income before cumulative effect
of change in accounting principle......... $ 297,588 $204,370 $109,809
Cumulative effect of change in accounting
principle, net of tax benefit............. - - (55,943)
--------- -------- --------
Net income applicable to common and
common equivalent shares.................. $ 297,588 $204,370 $ 53,866
========= ======== ========
Average shares of common stock
outstanding............................... 55,988 55,333 54,370
Common Equivalent Shares:
Assumed exercise of outstanding
dilutive options........................ 2,438 2,867 2,213
Less shares repurchased from proceeds of
assumed exercise of options............. (1,932) (2,188) (1,864)
--------- -------- --------
Average common and common equivalent
shares.................................... 56,494 56,012 54,719
========= ======== ========
Earnings per share:
Before cumulative effect of change in
accounting principle.................... $ 5.27 $ 3.65 $ 2.01
Cumulative effect of change in
accounting principle.................... - - (1.03)
--------- -------- --------
Net earnings per share...................... $ 5.27 $ 3.65 $ .98
========= ======== ========
- - The computation of the number of shares repurchased from the proceeds of
the assumed exercise of outstanding dilutive options is based upon the
average market price of the Company's common stock during the periods.
Common equivalent shares are excluded in periods in which their assumed
exercise would have an anti-dilutive effect.
- - Fully diluted earnings per share are substantially the same as earnings per
share for the years ended May 31, 1995, 1994, and 1993.