Nike 2003 Annual Report Download - page 73

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EXHIBIT 12.1
NIKE, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Year Ended May 31,
2003 2002 2001
(In millions)
Netincome ...................................................... $ 474.0 $ 663.3 $ 589.7
Incometaxes ..................................................... 382.9 349.0 331.7
Cumulative change in accounting principle ............................. 266.1 5.0 —
Incomebeforeincometaxesandcumulativechange .............. 1,123.0 1,017.3 921.4
Add fixed charges
Interest expense (A) ............................................. 43.7 49.3 67.1
Interest component of leases (B) .................................... 61.1 53.3 50.7
Totalfixedcharges ........................................ 104.8 102.6 117.8
Earningsbeforeincometaxesandfixedcharges(C) ...................... $1,227.0 $1,118.2 $1,030.8
Ratio of earnings to total fixed charges ................................. 11.7 10.9 8.8
(A) Interest expense includes interest both expensed and capitalized.
(B) Interest component of leases includes one-third of rental expense, which approximates the interest
component of operating leases.
(C) Earnings before income taxes and fixed charges is exclusive of capitalized interest.