NIKE, INC. COMPUTATION OF RATIO OF EARNINGS TO CHARGES Three Months Ended August 31, __________________ 1999 1998 ____ ____ (in millions) Net income $200.2 $163.8 Income taxes 122.7 107.0 ______ ______ Income before income taxes 322.9 270.8 ______ _____ Add fixed charges Interest expense (A) 11.7 15.6 Interest component of leases (B) 11.7 10.4 ______ ______ Total fixed charges 23.4 26.0 ______ ______ Earnings before income taxes and fixed charges (C) $344.6 $295.4 ====== ====== Ratio of earnings to total fixed charges 14.73 11.36 ====== ====== (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.