EX-12.1 4 nke-5312018xexhibit121.htm EXHIBIT 12.1

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) | 2018 |  | 2017 |  | 2016 |  | 2015 |  | 2014
Income before income taxes | $ | 4,325 |  |  | $ | 4,886 |  |  | $ | 4,623 |  |  | $ | 4,205 |  |  | $ | 3,544 |
Capitalized interest, net of amortization | (10 | ) |  | (8 | ) |  | (3 | ) |  | — |  |  | — |
Adjusted income before income taxes | 4,315 |  |  | 4,878 |  |  | 4,620 |  |  | 4,205 |  |  | 3,544 |
Add fixed charges: |  |  |  |  |  |  |  |  |
Interest expense(1)(2) | 149 |  |  | 121 |  |  | 74 |  |  | 60 |  |  | 58 |
Interest component of leases(3) | 125 |  |  | 102 |  |  | 66 |  |  | 59 |  |  | 53 |
Total fixed charges | 274 |  |  | 223 |  |  | 140 |  |  | 119 |  |  | 111 |
Earnings before income taxes and fixed charges | $ | 4,589 |  |  | $ | 5,101 |  |  | $ | 4,760 |  |  | $ | 4,324 |  |  | $ | 3,655 |
Ratio of earnings to total fixed charges | 16.7 |  |  | 22.9 |  |  | 34.0 |  |  | 36.3 |  |  | 32.9 |

(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) | Represents the portion of rental expense which management believes approximates the interest component of operating leases.