Nike 2014 Annual Report Download - page 80

Download and view the complete annual report

Please find page 80 of the 2014 Nike annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 86

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86

PART IV
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) 2014 2013 2012 2011 2010
Net income from continuing operations $ 2,693 $ 2,451 $ 2,257 $ 2,163 $ 1,916
Income taxes 851 805 754 689 612
Income before income taxes 3,544 3,256 3,011 2,852 2,528
Add fixed charges
Interest expense(1) 58 23 31 32 33
Interest component of leases(2) 53 48 42 39 36
TOTAL FIXED CHARGES 111 71 73 71 69
Earnings before income taxes and fixed charges(3) $ 3,655 $ 3,327 $ 3,084 $ 2,923 $ 2,597
Ratio of earnings to total fixed charges 32.9 46.9 42.2 41.2 37.6
(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.
NIKE, INC. 2014 Annual Report and Notice of Annual Meeting 123
FORM 10-K