EX-12.1 4 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

EXHIBIT 12.1

NIKE, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

     Year Ended May 31,
   2007    2006    2005
   (In millions)

Net income

    $ 1,491.5    $ 1,392.0    $ 1,211.6

Income taxes

      708.4      749.6      648.2

Income before income taxes

      2,199.9      2,141.6      1,859.8
                    

Add fixed charges

         

Interest expense(1)

      49.7      50.5      39.7

Interest component of leases(2)

      95.1      84.0      77.5
                    

Total fixed charges

      144.8      134.5      117.2
                    

Earnings before income taxes and fixed charges(3)

    $ 2,344.7    $ 2,276.1    $ 1,977.0
                    

Ratio of earnings to total fixed charges

      16.2      16.9      16.9
                    

(1)

  

Interest expense includes interest both expensed and capitalized.

 

(2)

  

Interest component of leases includes one-third of rental expense, which approximates the interest component of operating leases.

 

(3)

  

Earnings before income taxes and fixed charges is exclusive of capitalized interest.