EX-12.1 8 a2225989zex-12_1.htm EX-12.1

EXHIBIT 12.1

 

FEDEX CORPORATION

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(UNAUDITED)

(IN MILLIONS, EXCEPT RATIOS)

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

August 31,

 

Year Ended May 31,

 

 

 

2015

 

2014

 

2015

 

2014

 

2013

 

2012(1)

 

2011

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

$

1,084

 

$

1,012

 

$

1,627

 

$

3,658

 

$

4,338

 

$

(444

)

$

2,002

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net of capitalized interest

 

68

 

51

 

235

 

160

 

82

 

52

 

86

 

Amortization of debt issuance costs

 

2

 

1

 

5

 

4

 

5

 

5

 

16

 

Portion of rent expense representative of interest factor

 

237

 

221

 

908

 

876

 

864

 

797

 

852

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings as adjusted

 

$

1,391

 

$

1,285

 

$

2,775

 

$

4,698

 

$

5,289

 

$

410

 

$

2,956

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net of capitalized interest

 

$

68

 

$

51

 

$

235

 

$

160

 

$

82

 

$

52

 

$

86

 

Capitalized interest

 

11

 

8

 

37

 

29

 

45

 

85

 

71

 

Amortization of debt issuance costs

 

2

 

1

 

5

 

4

 

5

 

5

 

16

 

Portion of rent expense representative of interest factor

 

237

 

221

 

908

 

876

 

864

 

797

 

852

 

 

 

$

318

 

$

281

 

$

1,185

 

$

1,069

 

$

996

 

$

939

 

$

1,025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges

 

4.4

 

4.6

 

2.3

 

4.4

 

5.3

 

—

 

2.9

 

 

(1)         Earnings for 2012 were inadequate to cover fixed charges. Additional earnings of $529 million would have been necessary to bring the ratio for this period to 1.0.