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EXHIBIT 12.1
FEDERAL EXPRESS CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited)
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Three Months Ended
Year Ended May 31, August 31,
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1996 1997 1998 1999 2000 1999 2000
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(In thousands, except ratios)
<S> <C> <C> <C> <C> <C> <C> <C>
Earnings:
Income before income taxes........... $ 539,959 $ 628,221 $ 735,213 $ 770,700 $ 843,547 $188,770 $236,537
Add back:
Interest expense, net of
capitalized interest............. 105,449 95,689 117,726 90,595 81,646 20,059 20,506
Amortization of debt
issuance costs................... 1,628 1,328 1,339 9,199 602 154 141
Portion of rent expense
representative of
interest factor.................. 386,254 434,846 499,823 535,486 575,397 139,253 137,378
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Earnings as adjusted................. $1,033,290 $1,160,084 $1,354,101 $1,405,980 $1,501,192 $348,236 $394,862
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Fixed Charges:
Interest expense, net of
capitalized interest............... $ 105,449 $ 95,689 $ 117,726 $ 90,595 $ 81,646 $ 20,059 $ 20,506
Capitalized interest................. 39,254 39,449 31,443 35,152 30,168 7,716 4,916
Amortization of debt issuance costs.. 1,628 1,328 1,339 9,199 602 154 441
Portion of rent expense
representative of interest factor.. 386,254 434,846 499,823 535,486 575,397 139,253 137,378
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$ 532,585 $ 571,312 $ 650,331 $ 670,432 $ 687,813 $167,182 $163,241
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Ratio of Earnings to Fixed Charges... 1.9 2.0 2.1 2.1 2.2 2.1 2.4
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