EXHIBIT 12.1
NIKE, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
YEAR ENDED MAY 31,
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1995 1996 1997
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(DOLLARS IN THOUSANDS)
Net income................................................................. $ 399,664 $ 553,190 $ 795,822
Income taxes............................................................... 250,200 345,900 499,400
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Income before income taxes............................................... 649,864 899,090 1,295,222
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Add fixed charges
Interest expense (A)..................................................... 24,469 40,356 55,108
Interest component of leases (B)......................................... 14,502 17,494 28,036
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Total fixed charges........................................................ 38,971 57,850 83,144
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Earnings before income taxes and fixed charges (C)......................... $ 688,574 $ 956,082 $ 1,375,601
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Ratio of earnings to total fixed charges................................... 17.67 16.53 16.54
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(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.