EX-12.1 3 nke-5312016xexhibit121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

EXHIBIT 12.1 NIKE, Inc. Computation of Ratio of Earnings to Fixed Charges

The following disclosure reflects the Company's continuing operations:

| Year Ended May 31,
(In millions) | 2016 |  | 2015 |  | 2014 |  | 2013 |  | 2012
Income before income taxes | $ | 4,623 |  |  | $ | 4,205 |  |  | $ | 3,544 |  |  | $ | 3,256 |  |  | $ | 3,011 |
Capitalized interest, net of amortization | (3 | ) |  | — |  |  | — |  |  | — |  |  | — |
Adjusted income before income taxes | 4,620 |  |  | 4,205 |  |  | 3,544 |  |  | 3,256 |  |  | 3,011 |
Add fixed charges: |  |  |  |  |  |  |  |  |
Interest expense(1)(2) | 74 |  |  | 60 |  |  | 58 |  |  | 23 |  |  | 31 |
Interest component of leases(3) | 66 |  |  | 59 |  |  | 53 |  |  | 48 |  |  | 42 |
Total Fixed Charges | 140 |  |  | 119 |  |  | 111 |  |  | 71 |  |  | 73 |
Earnings before income taxes and fixed charges | $ | 4,760 |  |  | $ | 4,324 |  |  | $ | 3,655 |  |  | $ | 3,327 |  |  | $ | 3,084 |
Ratio of earnings to total fixed charges | 34.0 |  |  | 36.3 |  |  | 32.9 |  |  | 46.9 |  |  | 42.2 |

(1) | Interest expense includes interest both expensed and capitalized and amortization of premiums, discounts and capitalized expenses related to indebtedness.

(2) | Interest expense does not include interest related to uncertain tax positions.

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