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. |