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Investor Presentaiton

7 – Represents the hypothetical interest expense implied within rentals expenses the company would incur if property under operating leases were owned or accounted for as finance leases. Estimated using the weighted-average discount rate for operating leases, which was 2.85% for 2022, applied to the total of the average current and long-term operating lease liabilities as of May 31, 2022 and May 31, 2021, respectively. See "Fiscal 2022 and 2021 Financial Measures— Return on Invested Capital and Adjusted Dividend Payout Ratio" above for additional information. 8 - Calculated as 2022 adjusted operating income with the add-back for interest on average operating leases multiplied by the 2022 adjusted current income tax rate of 11.9%. Our current income tax rate for 2022 of 15.3% is calculated by dividing our current tax provision by income before income taxes, and has been adjusted as follows: Current income tax rate (GAAP) MTM retirement plans accounting adjustments Business realignment costs FedEx Ground legal matter TNT Express integration expenses Adjusted current income tax rate (non-GAAP) 15.3% (3.7)% 0.5% (0.4)% 0.2% 11.9% See "Fiscal 2022 and 2021 Financial Measures-Return on Invested Capital and Adjusted Dividend Payout Ratio" above for additional information. 9- Other than average adjusted net working capital, amounts are averages of the applicable line items included in FedEx's condensed consolidated balance sheets for the fiscal years ended May 31, 2022 and May 31, 2021, respectively. 10 - Calculated as our average total current assets for the years ended May 31, 2022 and May 31, 2021, adjusted as follows, minus our average total current liabilities for the years ended May 31, 2022 and May 31, 2021, adjusted as follows: Dollars in millions Average total current assets (GAAP) 20,473 Average cash and cash equivalents in excess of those required to support daily business operations and those held in restricted offshore accounts Adjusted average total current assets (non-GAAP) (5,232) $ 15,241 Average total current liabilities (GAAP) 13,967 Average current portion of long-term debt (114) Average current portion of operating lease liabilities (2,326) Adjusted average total current liabilities (non-GAAP) $ 11,527 Average adjusted net working capital (non-GAAP) $ 3,714 See "Fiscal 2022 and 2021 Financial Measures-Return on Invested Capital and Adjusted Dividend Payout Ratio" above for additional information. 11 Does not sum to total due to rounding.
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