Federal Express 2000 Annual Report Download - page 28

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26
NOTE 9: COMPUTATION OF EARNINGS PER SHARE
The calculation of basic earnings per share and earnings per share, assum ing dilution, for the years ended
May 31 was as follows:
In thousands, except per share amounts 2000 1999 1998
Income from continuing operations $688,336 $631,333 $498,155
Income from discontinued operations ––4,875
N et incom e applicable to com m on stockholders $688,336 $631,333 $503,030
Average shares of com m on stock outstanding 291,727 295,983 293,401
Basic earnings per share:
Continuing operations $ 2.36 $ 2.13 $ 1.70
Discontinued operations ––.02
$ 2.36 $ 2.13 $ 1.72
Average shares of com m on stock outstanding 291,727 295,983 293,401
Comm on equivalent shares:
Assumed exercise of outstanding dilutive options 12,735 13,090 13,849
Less shares repurchased from proceeds of assum ed exercise of options (8,136) (8,430) (8,842)
Average com m on and comm on equivalent shares 296,326 300,643 298,408
Earnings per share, assuming dilution:
Continuing operations $ 2.32 $ 2.10 $ 1.67
Discontinued operations ––.02
$ 2.32 $ 2.10 $ 1.69
In Septem ber 1999, FedEx’s Board of Directors approved a plan that authorized the purchase of up to
15,000,000, or approxim ately 5% , of FedEx’s outstanding shares of comm on stock. FedEx com pleted its
purchases under the plan in 2000 at an average cost of $39.75 per share. As of May 31, 2000, FedEx had
14,128,998 shares in treasury for general corporate purposes.
NOTE 10: INCOME TAXES
The com ponents of the provision for incom e taxes
for the years ended May 31 were as follows:
In thousands 2000 1999 1998
Current provision:
Dom est ic
Federal $365,137 $385,164 $267,471
State and local 48,837 49,918 32,839
Foreign 39,844 22,730 36,543
453,818 457,812 336,853
Deferred provision
(credit):
Dom est ic
Federal (3,444) (21,773) 56,408
State and local 469 (4,437) 7,860
Foreign (1,439) (1,871) 242
(4,414) (28,081) 64,510
$449,404 $429,731 $401,363
Incom e taxes have been provided for foreign opera-
tions based upon the various tax laws and rates of
the countries in which FedEx’s operations are con-
ducted. There is no direct relationship between
FedEx’s overall foreign incom e tax provision and
foreign pretax book income due to the different
m ethods of taxation used by countries throughout
the world. In 1998, FedEx entities in foreign
locations reported a net foreign pretax loss of
$98,000,000, comprising foreign pretax income
of $208,000,000 and foreign pretax losses
of $306,000,000.