EX-12.1 5 d341264dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges
EXHIBIT 12.1   NIKE, Inc. Computation of Ratio of Earnings to Fixed Charges

 

 

    Year Ended May 31,  
(In millions)                        2012                          2011                          2010                          2009                          2008  
Net income   $ 2,223      $ 2,133      $ 1,907      $ 1,487      $ 1,883   
Income taxes     760        711        610        470        620   
Income before income taxes     2,983        2,844        2,517        1,957        2,503   
Add fixed charges                

Interest expense(1)

     32        34        36        40        41   

Interest component of leases(2)

     50        45        42        40        34   
TOTAL FIXED CHARGES     82        79        78        80        75   
Earnings before income taxes and fixed charges(3)     $ 3,065      $ 2,923      $ 2,595      $ 2,037      $ 2,578   
Ratio of earnings to total fixed charges     37.4        37.0        33.3        25.5        34.4   

 

(1) Interest expense includes interest both expensed and capitalized.

 

(2) Interest component of leases includes one-tenth of rental expense which approximates the interest component of operating leases.

 

(3) Earnings before income taxes and fixed charges are exclusive of capitalized interest.