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Exhibit 12
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FEDERAL EXPRESS CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited)
Year Ended May 31,
----------------------------------------------------------------------
1996 1997 1998 1999 2000
----------- ----------- ------------- ----------- -----------
(In thousands, except ratios)
<S> <C> <C> <C> <C> <C>
Earnings:
Income before income taxes................ $ 539,959 $ 628,221 $ 735,213 $ 770,700 $ 843,547
Add back:
Interest expense, net of
capitalized interest................ 105,449 95,689 117,726 90,595 81,646
Amortization of debt
issuance costs...................... 1,628 1,328 1,339 9,199 602
Portion of rent expense
representative of
interest factor..................... 386,254 434,846 499,823 535,486 575,397
---------- ---------- ---------- ---------- ----------
Earnings as adjusted......................... $1,033,290 $1,160,084 $1,354,101 $1,405,980 $1,501,192
========== ========== ========== ========== ==========
Fixed Charges:
Interest expense, net of
capitalized interest.................. $ 105,449 $ 95,689 $ 117,726 $ 90,595 $ 81,646
Capitalized interest.................... 39,254 39,449 31,443 35,152 30,168
Amortization of debt
issuance costs........................ 1,628 1,328 1,339 9,199 602
Portion of rent expense
representative of interest
factor................................ 386,254 434,846 499,823 535,486 575,397
--------- --------- --------- --------- ---------
$ 532,585 $571,312 $ 650,331 $670,432 $ 687,813
========= ======== ========== ======== =========
Ratio of Earnings to Fixed
Charges................................. 1.9 2.0 2.1 2.1 2.2
========= ======== ========== ======== ========
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