NIKE (NKE) 10-K 2005 FY Annual report

EXHIBIT 12.1

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

			Year Ended May 31,
			2005		2004		2003
			(In millions)
Net income			$	1,211.6	$	945.6	$	474.0
Income taxes				648.2		504.4		382.9
Cumulative effect of accounting change				—		—		266.1
Income before income taxes and cumulative effect of accounting change				1,859.8		1,450.0		1,123.0
Add fixed charges
	Interest expense(A)			39.7		40.6		43.7
	Interest component of leases(B)			77.5		68.9		61.1
		Total fixed charges		117.2		109.5		104.8
Earnings before income taxes and fixed charges(C)			$	1,977.0	$	1,559.2	$	1,227.0
Ratio of earnings to total fixed charges				16.9		14.2		11.7

(A)	Interest expense includes interest both expensed and capitalized.
(B)	Interest component of leases includes one-third of rental expense, which approximates the interest component of operating leases.
(C)	Earnings before income taxes and fixed charges is exclusive of capitalized interest.