Nike 2015 Annual Report Download - page 81

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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) 2015 2014 2013 2012 2011
Net income from continuing operations $ 3,273 $ 2,693 $ 2,451 $ 2,257 $ 2,163
Income tax expense 932 851 805 754 689
Income before income taxes 4,205 3,544 3,256 3,011 2,852
Add fixed charges:
Interest expense(1) 60 58 23 31 32
Interest component of leases(2) 59 53 48 42 39
TOTAL FIXED CHARGES 119 111 71 73 71
Earnings before income taxes and fixed charges(3) $ 4,324 $ 3,655 $ 3,327 $ 3,084 $ 2,923
Ratio of earnings to total fixed charges 36.3 32.9 46.9 42.2 41.2
(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 includes amortization of capitalized interest.
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