NIKE (NKE) 10-K 2003 FY Annual report

EXHIBIT 12.1

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

	Year Ended May 31,
	2003		2002		2001
	(In millions)
Net income	$	474.0	$	663.3	$	589.7
Income taxes		382.9		349.0		331.7
Cumulative change in accounting principle		266.1		5.0		—
Income before income taxes and cumulative change		1,123.0		1,017.3		921.4
Add fixed charges
Interest expense (A)		43.7		49.3		67.1
Interest component of leases (B)		61.1		53.3		50.7
Total fixed charges		104.8		102.6		117.8
Earnings before income taxes and fixed charges (C)	$	1,227.0	$	1,118.2	$	1,030.8
Ratio of earnings to total fixed charges		11.7		10.9		8.8

(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.