EX-12.1 3 a2067661zex-12_1.htm COMPUTATION OF RATIO OF EARNINGS Prepared by MERRILL CORPORATION
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EXHIBIT 12.1

FEDERAL EXPRESS CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(UNAUDITED)
(IN MILLIONS, EXCEPT RATIOS)

 
   Six Months
Ended
November 30,
   Year Ended May 31,
 
   2001
   2000
   2001
   2000
   1999
   1998
   1997
Earnings:                                          
  Income before income taxes   $ 387   $ 489   $ 785   $ 843   $ 771   $ 735   $ 628
Add back:                                          
  Interest expense, net of capitalized interest     36     40     75     82     91     118     96
  Amortization of debt issuance costs     —     —     1     1     9     1     1
  Portion of rent expense representative of interest factor     298     278     563     575     535     500     435
   
 
 
 
 
 
 
Earnings as adjusted   $ 721   $ 807   $ 1,424   $ 1,501   $ 1,406   $ 1,354   $ 1,160
   
 
 
 
 
 
 
Fixed Charges:                                          
  Interest expense, net of capitalized interest   $ 36   $ 40   $ 75   $ 82   $ 91   $ 118   $ 96
  Capitalized interest     14     9     23     30     35     31     39
  Amortization of debt issuance costs     —     —     1     1     9     1     1
  Portion of rent expense representative of interest factor     298     278     563     575     535     500     435
   
 
 
 
 
 
 
    $ 348   $ 327   $ 662   $ 688   $ 670   $ 650   $ 571
   
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges     2.1     2.5     2.2     2.2     2.1     2.1     2.0
   
 
 
 
 
 
 


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