NIKE, INC. COMPUTATION OF RATIO OF EARNINGS TO CHARGES Three Months Ended August 31, __________________ 1998 1997 ____ ____ (in millions) Net income $163.8 $253.1 Income taxes 107.0 158.5 ______ ______ Income before income taxes 270.8 411.6 ______ _____ Add fixed charges Interest expense (A) 15.6 17.2 Interest component of leases (B) 10.4 10.1 ______ ______ Total fixed charges 26.0 27.3 ______ ______ Earnings before income taxes and fixed charges (C) $295.4 $438.6 ====== ====== Ratio of earnings to total fixed charges 11.36 16.07 ====== ======= (A) Interest expense includes 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.